Reserve

Future

United

Jerome Powell

Chair

The United States Federal Reserve Open Market Committee (FOMC) has <a rel="nofollow" href="https://www.reuters.com/markets/us/fed-poised-hold-rates-steady-despite-economys-bullish-tone-2023-11-01/">maintained </a>an interest rate range of 5.25%-5.50%. 
<h2 id="strong-interest-rate-kept-in-the-5-25-to-5-5-range-strong">Interest Rate Kept in the 5.25% to 5.5% Range</h2> 
The Fed Reserve voted to keep the interest rate <a href="https://coingape.com/fomc-us-fed-interest-rate-bitcoin-price-btc/">unchanged</a>,&nbsp;keeping the interest rate standing at a 22-year high. At the same time, the door is left open for a surge in borrowing costs, according to a policy statement that acknowledged the U.S. economy’s surprising strength. Meanwhile, it also nodded to the tighter financial conditions faced by businesses and households.&nbsp; 
<blockquote>
 “Economic activity expanded at a strong pace in the third quarter,” the U.S. Federal Reserve noted. The recent rate decision also gives policymakers time to “assess additional information and its implications for monetary policy.”
</blockquote> 
On the other hand, there are some speculations that the pause in the hike of interest rates may be the birth of a stronger hike in the future. Financial conditions are tightening on their own and this points to a stronger-than-expected economy and labor market, a trend that underscores the possibility of future hikes. 
<h2 id="strong-historic-monetary-tightening-strong">Historic Monetary Tightening</h2> 
It is worth noting that the United States has been on an aggressive push per its interest rate hike policy since March 2022.&nbsp; 
However, this is the first time that the officials held the interest rate at a steady range for two consecutive meetings. In the September 20, 2023 meeting, <a href="https://coingape.com/us-fed-fomc-minutes-bitcoin-price-crypto-news/">the FOMC revealed its plans </a>to keep the benchmark federal funds rate steady at the current target rate of 5.25-5.50% 
At the time, it was said that “The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. In support of these goals, the Committee decided to maintain the target range for the federal funds rate at 5-1/4 to 5-1/2 percent.” 
About two weeks ago, the Fed Reserve Chair <a href="https://coingape.com/fed-chair-hints-at-no-more-interest-rate-hikes-crypto-market-cheers/">Jerome Powell hinted</a>&nbsp;at the possibility of not having any other additional rate hike. Based on a Coingape report, Powell suggested that if the recent progress on inflation continues and long-term Treasury yields remain elevated, the central bank may keep up with the pause of its historic series of interest rate hikes. 
Meanwhile, the crypto market is almost non-reactive to the news as Bitcoin’s (BTC) price remains pegged at $34,682.19 atop a 0.20% surge. 
The post <a rel="nofollow" href="https://coingape.com/us-federal-reserve-keeps-interest-rate-steady-hints-future-hikes/">US Federal Reserve Keeps Rate Steady, Hints Future Hikes</a> appeared first on <a rel="nofollow" href="https://coingape.com">CoinGape</a>.

US Federal Reserve Keeps Rate Steady, Hints Future Hikes

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