The FED's interest rate decision, which was eagerly awaited by the cryptocurrency market and traditional markets, was announced.
As expected, the FED left interest rates constant.
According to the published statement, the FOMC does not consider cutting interest rates until it has more confidence that inflation is returning to target.
Following his decision, Bitcoin's first reaction was as follows:
All eyes will now be on the press conference that FED President Jerome Powell will hold in half an hour, Turkey time (UTC+3). As Bitcoinsistemi.com, we will present this to you in an up-to-date manner.
- The median view of FED officials on the long-term funding rate was 2.6%. (previous 2.5%).
- The median view of FED officials for the end of 2025 was 3.9%. (previous 3.6%).
- The median view of FED officials for the end of 2024 was 4.6%. (previous 4.6%).
- The FED announced that the decision was unanimous in favor of the policy.
- Economic activity is expanding at a solid pace, employment growth remains strong, and the unemployment rate is low.
- According to FED projections, only one official predicts more than three 25 bp interest rate cuts in 2024.
Most economists surveyed by financial data company FactSet thought the Fed would keep its benchmark interest rate steady today and at its next meeting on May 1.
Consumers expecting lower borrowing costs may have to wait until next month to get relief, according to FactSet data; Nearly half of economists think that the FED will cut interest rates for the first time in four years at its meeting on June 12.
The FED started increasing interest rates in March 2022 as inflation rose during the pandemic, and increased it to the highest level in the last 40 years in June of that year. Although inflation has fallen sharply since then, it remains higher than the Fed wants, so economists believed the central bank would keep rates steady this week.
“The Fed will not change its forward guidance while emphasizing that it needs more evidence that inflation is on a sustainable path toward the 2% target before cutting interest rates,” Ryan Sweet, chief U.S. economist at Oxford Economics, said in a report to investors on Monday.
*This is not investment advice.