Bitcoin, ETH prices increased more than 1% after the US Fed kept interest rates unchanged
Cryptocurrency prices fluctuated on Wednesday as investors analyzed comments from the US Federal Reserve (Fed) that provided new insight into the US central bank's fight against inflation .
Policymakers' move to leave interest rates unchanged for an 11th straight month was a foregone conclusion, based on developments in the Fed futures market. In its most restrictive position in more than 20 years, the Fed kept its benchmark borrowing rate at between 5.25% and 5.5%.
However, the release of a “dot plot” this month shows that leaders at the US central bank have seen a notable change in financial conditions since March. In Brief In its most recent economic forecast, the Fed has announced three interest rate cuts through the end of the year.
The dot plot released Wednesday shows that Fed policymakers now think another rate cut may be more appropriate - interpreted by the market as a hawkish sign. This forecast far exceeds the two rate cuts that economists expected the Fed might make, as it appears the Fed will keep interest rates higher for longer as the economy and The US labor market is strong.
Cryptocurrency prices rose earlier in the day on news that inflation had fallen to 3.3% in the 12 months through May. The report showed that consumer prices for US goods and services last month increased slightly less than economists predicted.
