Federal Reserve Chair Jerome Powell has indicated the possibility of two additional rate hikes this year. The statement follows a decision by the Federal Open Market Committee (FOMC) to pause the series of consecutive rate increases. Powell’s remarks provide insights into the Fed’s monetary policy direction as it aims to navigate the economic landscape.
Since March 2022, the Federal Reserve has implemented a series of ten consecutive interest rate hikes, steadily increasing rates from an initial level of 0.13% on March 22, 2022, to 5.13% by the 10th rate hike on May 3 of this year. These consistent rate adjustments reflect the Federal Reserve’s efforts to manage and respond to evolving economic conditions and maintain price stability.
In a recent CNBC report, it was revealed that the US Federal Reserve maintains a hawkish stance on its interest rates leading up to its upcoming meeting on July 25-26. Fed Chair Jerome Powell acknowledged the significant policy actions taken by the central bank, including a five-percentage-point increase in the policy interest rate and a rapid reduction of security holdings.
Powell emphasized that the impact of these tightening measures is still unfolding and their full effects are yet to be fully experienced. This suggests that the Federal Reserve remains cautious and attentive to the potential outcomes of its ongoing monetary policy adjustments.
Also Read: US Fed Chair Powell: Interest Rates May Stay Low
According to a CNBC report, the announcement of two additional rate hikes by the US Federal Reserve resulted in immediate pressure on US stocks. Simultaneously, the cryptocurrency market experienced a period of uncertainty within the past 24 hours. The market capitalization of cryptocurrencies saw a significant decline of approximately 3.56%, equating to a substantial drop of around $42 billion. This sudden downturn reflects the impact of the news on investor sentiment and highlights the potential volatility within the crypto market in response to monetary policy developments.
In addition to the news of two upcoming rate hikes, it is worth noting that the US Federal Reserve has already implemented three interest rate increases since February. Following the pause on rate hikes, the crypto market, particularly bitcoin (BTC), experienced a decline in value, leading to a sense of frustration within the crypto community on Twitter. The reactions on social media platforms highlight the impact of monetary policy decisions on the volatile crypto market, emphasizing the interconnectedness between traditional finance and the digital asset space.
Reactions from crypto Twitter:
STOCKS ARE IN BULL MARKET
FED PAUSED THE RATE HIKE
BUT BITCOIN STILL AT $25,800
ALTS ARE DOWN 50%
SEC IS SUING EVERYONE
FUCK THIS CRYPTO SHIT !! IM DONE pic.twitter.com/srnG8lFZzv
— Ash Crypto (@Ashcryptoreal) June 14, 2023
The FED stops the rate hike, #Bitcoin crashes. Anyone know why?
Wasn’t that supposed to be bullish? 🧐#BTC #BTCUSD pic.twitter.com/8BySRdxFdx
— Duo Nine ⚡ YCC (@DU09BTC) June 15, 2023
Feds and the Banking Cartel for the next 5 years every time they anticipate a Fed rate hike pic.twitter.com/BtW4S4Edft
— OfficiallyRNB (@CryptoWarrior01) June 14, 2023
GM Fams! Interest rate hike is 0%, why #bitcoin is red #NFT #NFTartwork #NFTCommunity #eth #Ethereum #NFTdrop #nftcollectors #NFTs #NFTGiveaway #mexc #Mainnet #web3 #crypto #blockchain #GM #meme #CryptoMeme pic.twitter.com/WAKyWfdlTT
— sermorpheus (@sermorpheus) June 15, 2023
Also Read: FOMC Decrees “Pause” on Bonds, Dollar, and Inflation, Peter Brandt Predicts Bitcoin Rally
Important: This article is intended solely for informational purposes. It should not be considered or relied upon as legal, tax, investment, financial, or any other form of advice.
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