Federal Reserve Chairman Jerome Powell said on Thursday that the issue of increasing the US interest rate by 50 basis points (0.5 percentage points) will be “on the table” for the next Federal Open Market Committee (FOMC) meeting in May. . Bitcoin and altcoin prices reacted on this. Here are the details…
FED prepares for aggressive monetary policy
This shows how aggressively the authorities are planning to reduce inflation, which has risen to 8.5 percent, the fastest rate in four decades. In recent years, the Fed has rarely raised interest rates more than 25 basis points at a time. “I would say 50 basis points will be on the table at the May meeting,” Powell said at a panel organized by the International Monetary Fund (IMF) with European Central Bank President Christine Lagarde, Indonesia and other representatives from Barbados. As we reported as
Kriptokoin.com, at the March meeting, FOMC members agreed to a 25bps increase, but Powell said it would be appropriate to “move a little faster” and used the following statements: :
[…]Restoring price stability is absolutely necessary. The real [inflation] peak may be in March, but we don’t know that, so we won’t count on it. We’re really going to increase rates and quickly move to more neutral and then actually tighter levels…
Bitcoin and altcoins reacted to FED Chairman’s statement
Bitcoin (BTC) to S&P 500 90 With the daily correlation hitting a 17-month high in March and the crypto market moving in an increasing correlation with the stock market, crypto traders are watching macroeconomic indicators. After Powell’s comments, in the last 24 hours, BTC has fallen by 2 percent and retreated to just over $40,000.
Ethereum is down 2.2 percent and is trading just above $3,000. Cryptocurrencies such as BNB, XRP, SOL, ADA have also experienced an average decrease of 2 percent. Polkadot (DOT), with 3.6 percent, experienced the most decline among the top 20 with its market value.
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