Auto

Reserve

Brett (Arbitrum)

Bitcoin

<table style="width: 100%; border-collapse:">
 <tbody>
  <tr>
   <td style="width: 100%; text-align: left;"><a href="https://en.coinotag.com/altcoin-exchange-1333421/" target="_blank" rel="noopener noreferrer nofollow"><strong><span style="color: #000000;">Before you reading, did you missed the PEPE?<span style="color: #e67e22;"> No worries, click here to 100x potential memes!</span></span></strong></a></td>
  </tr>
 </tbody>
</table>
<ul>
 <li>The Federal Reserve (Fed) has decided not to change interest rates; many believe this decision will signal the end of the central bank’s interest rate hike cycle and pave the way for interest rate cuts next year.</li>
 <li>Although the central bank stated that it would maintain the 2% inflation target, Columbia Business School economics professor Brett House said, “The real question at this point is when they will start cutting.”</li>
 <li>Following the announcement of the Fed’s interest decision, Bitcoin experienced a 0.70% increase from levels around $42,140 to $42,440.</li>
</ul>
<p><strong>The Federal Reserve (Fed) has announced its interest decision: The eagerly awaited interest decision by the Fed is creating volatility in the markets: All the details!</strong></p>
<h2 id="strong-fed-announces-year-end-interest-decision-strong"><strong>Fed Announces Year-End Interest Decision</strong></h2>
<p><img loading="lazy" decoding="async" class="alignnone size-full wp-image-126862" src="https://i0.wp.com/en.coinotag.com/wp-content/uploads/2023/09/fed-bitcoin.webp?resize=696%2C392&amp;quality=70&amp;ssl=1" alt="fed-bitcoin" width="696" height="392" srcset="https://i0.wp.com/en.coinotag.com/wp-content/uploads/2023/09/fed-bitcoin.webp?w=1920&amp;quality=70&amp;ssl=1 1920w, https://i0.wp.com/en.coinotag.com/wp-content/uploads/2023/09/fed-bitcoin.webp?resize=300%2C169&amp;quality=70&amp;ssl=1 300w, https://i0.wp.com/en.coinotag.com/wp-content/uploads/2023/09/fed-bitcoin.webp?resize=1024%2C576&amp;quality=70&amp;ssl=1 1024w, https://i0.wp.com/en.coinotag.com/wp-content/uploads/2023/09/fed-bitcoin.webp?resize=768%2C432&amp;quality=70&amp;ssl=1 768w, https://i0.wp.com/en.coinotag.com/wp-content/uploads/2023/09/fed-bitcoin.webp?resize=1536%2C864&amp;quality=70&amp;ssl=1 1536w, https://i0.wp.com/en.coinotag.com/wp-content/uploads/2023/09/fed-bitcoin.webp?resize=150%2C84&amp;quality=70&amp;ssl=1 150w, https://i0.wp.com/en.coinotag.com/wp-content/uploads/2023/09/fed-bitcoin.webp?resize=696%2C392&amp;quality=70&amp;ssl=1 696w, https://i0.wp.com/en.coinotag.com/wp-content/uploads/2023/09/fed-bitcoin.webp?resize=1068%2C601&amp;quality=70&amp;ssl=1 1068w, https://i0.wp.com/en.coinotag.com/wp-content/uploads/2023/09/fed-bitcoin.webp?w=1392&amp;quality=70&amp;ssl=1 1392w" sizes="(max-width: 696px) 100vw, 696px" data-recalc-dims="1"></p>
<p>The Federal Reserve (Fed) has decided not to change interest rates; many believe this decision will signal the end of the central bank’s interest rate hike cycle and pave the way for interest rate cuts next year. The Fed has raised interest rates 11 times since March 2022—the fastest tightening since the early 1980s. Rising interest rates have increased consumer borrowing costs, putting pressure on many households, while inflation remains high.</p>
<p>Although the central bank stated that it would maintain the 2% inflation target, Columbia Business School economics professor Brett House said, “The real question at this point is when they will start cutting.” The federal funds rate, set by the U.S. central bank, is the interest rate at which banks lend and borrow overnight. While it is not the rate consumers directly pay, the Fed’s moves still affect interest rates for borrowing and saving that consumers see daily.</p>
<p>Following the announcement of the Fed’s interest decision, Bitcoin experienced a 0.70% increase from levels around $42,140 to $42,440. The dollar index also showed a 0.55% decline, falling from 103.880 to 103.315.</p>
<p>Here’s a look at how the central bank’s interest rate hike cycle has affected everything from mortgage rates to credit cards, auto loans, and student debt, and what borrowing costs could look like in the future:</p>
<h2 id="strong-credit-card-interest-rates-strong"><strong>Credit Card Interest Rates</strong></h2>
<p>Most credit cards come with variable interest rates directly tied to the Fed’s benchmark interest rate. The average credit card interest rate has risen from around 16.34% in March 2022 to nearly 21% today after previous interest rate hikes—a historic peak.</p>
<p>Due to high inflation and record interest rates, consumers are expected to face an additional $100 billion in credit card debt by the end of the year. It’s not just that more cardholders are carrying higher balances; future annual percentage rates are unlikely to show much improvement. Credit card interest rates won’t fall until the Fed starts cutting, and even then, they will only ease slightly from extremely high levels, says Bankrate’s Chief Financial Analyst Greg McBride.</p>
<p>McBride adds, “Credit card debt is expensive in any environment, but it’s especially true right now, and that’s not changing.”</p>
<h2 id="strong-mortgage-interest-rates-strong"><strong>Mortgage Interest Rates</strong></h2>
<p>Although 15-year and 30-year mortgage interest rates are fixed, anyone looking for a new home has lost significant purchasing power as home prices rise along with new loan interest rates, partly due to inflation and the Fed’s tightening policy. In fact, according to a report by real estate company Redfin, 2023 has been the most affordable year to buy a home in at least 11 years. “Mortgage interest rates have skyrocketed from record lows to record highs,” says McBride.</p>
<p>After reaching 8% in October, the average interest rate for a 30-year fixed-rate mortgage is currently 7.23%, up from 4.4% when the Fed began raising rates in March 2022 and 3.27% at the end of 2021, according to Bankrate.</p>
<p>Freddie Mac’s Chief Economist Sam Khater adds, “Market sensitivity has changed significantly in the last month, causing a continuous decline in mortgage interest rates. The current trajectory of interest rates is an encouraging development for potential homebuyers,” initiating demand by leading to “a modest increase,” he says, “provocative development.”</p>
<p>McBride expects mortgage interest rates to decrease in 2024 but doesn’t expect them to return to the low levels of the pandemic period. “You’re still looking at rates in the 6s, not rates in the 3s or 4s,” he says.</p>
<h2 id="strong-auto-loan-interest-rates-strong"><strong>Auto Loan Interest Rates</strong></h2>
<p>While auto loans are fixed, as auto prices rise along with new loan interest rates, more consumers find themselves unable to afford monthly payments. According to Bankrate, the average interest rate for a new five-year auto loan is currently 7.72%, up from 4% when the Fed started raising rates in March 2022.</p>
<p>Ivan Drury, director of insights at Edmunds, says, “The largest consumer segment financing a new car today has an annual return of 7.9%, significantly different from the pandemic deals of spring 2020 that offered 0% financing for 84 months, boosting significant sales of large trucks and SUVs.”</p>
<p>However, despite high-interest rates, vehicle affordability is increasing, new car prices are decreasing on an annual basis, and incentives for sales are rising. According to Cox Automotive Research, the “new vehicle market is becoming a buyer’s market, not a seller’s market.”</p>
<h2 id="strong-federal-student-loans-strong"><strong>Federal Student Loans</strong></h2>
<p>Since federal student loan interest rates are fixed, most borrowers were not immediately affected by the Fed’s moves. However, this year, new direct federal student loan borrowers are paying 5.50%—up from 4.99% for the 2022-23 academic year and 3.73% for 2021-22.</p>
<p>Since federal student loan payments resumed after a three-year hiatus, interest has begun accumulating again, proving to be a painful transition for many borrowers. However, if the Fed lowers interest rates in 2024, it could open up some refinancing opportunities, which could help.</p>
<h2 id="strong-high-yield-savings-interest-rates-strong"><strong>High-Yield Savings Interest Rates</strong></h2>
<p>While the Fed’s deposit interest rates have no direct impact, yields often change based on changes in the target federal funds interest rate. The interest rates on savings accounts at the largest retail banks have risen from historic lows throughout most of the pandemic and are currently averaging 0.46%, according to the Federal Deposit Insurance Corporation.</p>
<p>The highest-yielding online savings account interest rates have made more significant moves and are currently paying over 5%, according to Bankrate— the most they’ve paid in nearly 20 years—compared to around 1% in 2022.</p>
<p>While these rates may peak, “from a savings perspective, 2024 will still be a very good year for savers because the likely decline in returns from savings accounts will still be faster than inflation,” says McBride.</p>
<p>The post <a rel="noopener noreferrer nofollow" href="https://en.coinotag.com/breaking-news-feds-interest-decision-announced-reaction-of-bitcoin-and-global-markets/">BREAKING NEWS: Fed’s Interest Decision Announced: Reaction of Bitcoin and Global Markets!</a> appeared first on <a rel="noopener noreferrer nofollow" href="https://en.coinotag.com">COINOTAG NEWS</a>.</p>
<table style="width: 100%; border-collapse:">
 <tbody>
  <tr>
   <td style="width: 100%; text-align: left;"><a href="https://en.coinotag.com/altcoin-exchange-1333421/" target="_blank" rel="noopener noreferrer nofollow"><strong><span style="color: #000000;">Did you missed the PEPE?<span style="color: #e67e22;"> No worries, click here to 100x potential memes!</span></span></strong></a></td>
  </tr>
 </tbody>
</table>

BREAKING NEWS: Fed’s Interest Decision Announced: Reaction of Bitcoin and Global Markets!

Table of Contents

CO NEWS

Other articles published on Dec 13, 2023

Market Analysts Identify Hidden Potential in a Lesser-Known AI Crypto – Time to Buy?

BlackRock revises spot Bitcoin ETF application after meeting with SEC

ECB Study Reveals Minimal Environmental Impact of Euro Banknotes – How Does Crypto Compare?

U.S. DOE Launches Office of Critical and Emerging Technology to Drive Innovation

New Development in Binance SEC Case! Binance's Response to SEC's Request Was Not Delayed: "It Has...

3AC’s Su Zhu Examined in Singapore Court as Prosecutors Seek to Recover Creditor’s Assets

Join our free newsletter for daily crypto updates!