Markets had been paying attention to the Fed’s interest rate decision for days. At this point, explanations and evaluations came one after another. Finally, the expected came true and the FED announced its interest rate decision. Let’s look at the details.
Fed rate decision announced
Recently, especially due to the improvements in inflation data, expectations for the Fed’s interest rate decision have begun to diversify. Accordingly, the expectations were that the FED would pause the increase while making the interest rate decision. On the other hand, the employment figures, which were above the expectations, increased the expectations of such a decision. However, the view that the FED would adopt a hawkish stance was also dominant in the market. So everyone was waiting for the decision. Finally, the Fed announced its decision. Accordingly, the FED kept the policy rate constant in the range of 5-5.25 percent in line with the expectations. As it will be remembered, the FED increased interest rates by 25 basis points in May. With the last increase, interest rates had reached the range of 5-5.25 percent, the highest level of the last 16 years. Now it is at this level again.
As it will be remembered, the Fed drew attention to the fact that inflation was still higher in May regarding the interest rate decision. On the other hand, the positive situation in the first quarter in terms of economic activity was also pointed out. Another point that the FED emphasized was job gains. It should be noted that job gains were also positive for June. The FED also specifically stated that it would not hesitate to use all the instruments at its disposal to reduce inflation to 2 percent.
Bitcoin and cryptocurrencies after the interest rate decision
While everyone was waiting for the result of the FED interest rate decision, the crypto money market was focused on the upcoming news. Let’s take a look at Bitcoin and the leading cryptocurrencies after the decision. Bitcoin, the flagship of cryptocurrencies, has increased slightly after the decision. When we look at the price of Bitcoin while writing the article, we see that BTC is trading at $ 25,963 with an increase of 0.26%. Accordingly, Bitcoin has reacted positively to the interest rate decision.
When we look at Ethereum, the king of altcoins, as Kriptokoin.com, we witness that ETH is traded at $ 1,783 with an increase of 0.14 percent. There was already a bullish movement in Binance Coin BNB, the token of the leading crypto exchange Binance, before the decision today. BNB gained 4% today. It should be noted that the increase is due to Maverick farming, which is included in Binance’s token issuance platform today. BNB is trading at $246, up 5%. Finally, when we look at the gold price, the ounce price of gold is traded at the level of 1,944 dollars.
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