Federal Reserve Raises Interest Rates by 25 Basis Points

important point

• The Federal Reserve has raised interest rates another 25 basis points.
• This leaves the federal interest rate in the range of 4.50% to 4.75%.
• The move marks an easing of the central bank’s hawkish monetary policy.

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The US Federal Reserve announced today that it will raise interest rates to a range of 4.50% to 4.75%. This is an increase of 0.25% from last month. Interest rates remained 0% lower than he was a year ago.

4.50% to 4.75% rate

The Federal Reserve is raising interest rates by 25 basis points.

The US Central Bank announced today at the Federal Open Market Committee that it will raise the federal interest rate by just 0.25% to a range of 4.50% to 4.75%.

A rate hike is widely expected in the market, with analysts quoting 98% odds of a 25 basis point hike and 2% odds of a 50 basis point hike. Neither the major indices nor the cryptocurrency market reacted strongly to the announcement, with BTC rising just 0.07% immediately after the news.

This is the eighth time the Fed has hiked rates since early 2022. At that time, the interest rate was 0%. After being criticized for not taking inflation concerns seriously, the Fed soon began raising interest rates on a monthly basis. First he pulled up 25 points, then 50, then 75 multiple times. In doing so, banks increased their borrowing costs, which increased the value of the dollar.

However, the Fed’s hawkishness has been criticized by many institutions, including the United Nations. Warned in October By raising interest rates too quickly, central banks risk triggering a global recession. The Fed finally started to slow its rate hike aggressiveness last month, raising rates by 50 basis points instead of 75 basis points. Today’s decision is another step in that direction.

Disclaimer: At the time of writing, the author of this article owned BTC, ETH, and several other crypto assets.

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