The #US Federal Reserve raised rates by 25 bps as #inflation elevates. Another rate hike may come in September. #Crypto #FederalReserve #USA The post Federal Reserve Raises Interest Rates, Another Hike Possible in September appeared first on Crypto News Land.
- The Federal Reserve raises rates by 25 bps.
- Inflation remains elevated, the labor market is strong.
- Further rate hike possible in September.
In detail, analysts believe this could be the last interest rate hike in the current tightening cycle. In contrast, others think the Fed may remain on a “hawkish hold” until 2024 before considering a rate cut.
Despite the potential for future hikes, US money markets are now pricing in a strong likelihood of a rate cut in September. The money market-implied probability of a 25 bps interest rate cut back to 5.0-5.25% surged from zero to 78% following the Fed’s announcement.
In particular, US yields and the US Dollar Index (DXY) slipped slightly in response to the news. Meanwhile major US equity benchmarks like the S&P 500, Nasdaq 100, and Dow Jones Industrial Average remain mostly flat.
Likewise Ether (ETH) recorded a little over 1% gains, hovering in the upper $1,800s. Notably, Solana (SOL) was the standout performer among the top 10 cryptocurrencies by market cap, surging nearly 10% on the day.
Source: cryptonews.com
As the market digests the implications of the Federal Reserve’s decision and closely monitors economic data, investors in both traditional markets and cryptos are bracing for potential impacts on their portfolios. The crypto market, which has experienced increased volatility in recent times, remains influenced by macroeconomic factors and the evolving regulatory landscape.
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