- The decision follows two years of vigorous monetary policy tightening by the Fed.
- The crypto market responded slightly positively and Bitcoin gained around 2.54%.
A decision to maintain unchanged interest rates has been made by the Federal Reserve. Based on this decision, the benchmark overnight interest rate will remain between 5.25% and 5.50%. The decision follows two years of vigorous monetary policy tightening by the Federal Reserve.
The action was taken in reaction to the highest level of inflation in 40 years. This action by the central bank shows that they are taking their time to control inflation and economic development.
Officials at the Federal Reserve expect interest rates to fall by 0.75 percentage points by the end of 2024, even though they have kept them unchanged. Their goal is to achieve the 2% inflation objective set by the US central bank led by Powell, and their estimate is in line with that.
Upward Revision to Economic Growth Prediction
Nevertheless, it demonstrates hope for a better economy. It painted a picture of a robust economy that is adding jobs quickly and has a low unemployment rate.
A little shift in expectations is shown by the revised quarterly economic predictions released by the Federal Reserve. By year’s end, we anticipate a 2.6% increase in the personal consumption expenditures price index, excluding food and energy.
There has been an upward revision to the economic growth prediction as well. A year-over-year increase from 1.4% in December brings the new forecast up to 2.1%. In addition, experts predict that the US jobless rate will remain around 4% by the year’s conclusion.
The crypto market responded slightly positively and Bitcoin gained around 2.54% in the last 24 hours and is trading at $65,690. This brought some relief to investors and traders as the market is going through a bearish phase.
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