Breaking: Fed Raises Interest Rates by 25 Bps, Bitcoin Price Reacts
For the first time in three years, the United States Federal Reserve raised the benchmark interest rates by 25 bps.
In a unanimous decision, 12-0, the Committee decided to raise the target range for the federal funds rate by 1/4 percentage point to 3-3/4 to 4 percent, in support of its dual mandate.
This was quite expected given the recent developments, including the strong US labor report from a couple of weeks ago and the hawkish speech by Fed Chair Kevin Warsh. Moreover, the inflation data from last week gave the central bank even more reason to do so.
The price reaction from BTC was quite surprising, as the asset actually surged by a grand and a half to $76,500, where it was stopped for now.
The asset crashed hard yesterday after the Senate’s failure of the CLARITY Act, but today’s move shows that the Fed hike was priced in. All eyes are now on the next speech by Warsh.
More on the Fed’s decision as well as the CLARITY Act can be found in our video below.
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