🏦 The Fed kept its key rate. Bitcoin reacted with a slight fall 📉
On September 20, the US Federal Reserve System (FRS) maintained the key rate range at 5.25–5.5% per annum.
The decision coincided with market expectations. According to the Fed, U.S. inflation remains high, unemployment remains low, and economic activity continues to grow at a strong pace.
🗨️ “The US banking system is strong and resilient. Tighter credit conditions for households and businesses are likely to impact economic activity, hiring and inflation. The extent of these consequences remains uncertain. The Committee remains very sensitive to inflation risks,” the press release said.
The Fed will continue to aim for maximum employment and 2% inflation over the long term. If necessary, the department is ready to adjust the key rate range.
On September 13, the US Federal Bureau of Labor Statistics published a report on consumer prices. The index value turned out to be higher than market expectations - in annual terms, growth slowed from 4.7% to 4.3%, in monthly terms it increased from 0.2% to 0.3%.
The Nasdaq Composite, S&P 500, and Dow Jones indices reacted modestly to the Fed's decision, losing less than 0.5%.
The cryptocurrency market had almost no reaction to the news. According to CoinGecko, quotes of the largest digital assets by capitalization did not show significant dynamics.
Bitcoin first fell below $27,100 and then returned to $27,200. At the time of writing, the total cryptocurrency market capitalization remains above $1.1 trillion.
Let us remind you that in February 2023 the key rate was increased to 4.5-4.75% per annum. In March the figure reached 4.75-5%, and in May - 5-5.25%.
In June, the Fed kept the key rate range at 5–5.25% per annum for the first time since March 2022. The price of Bitcoin fell below $26,000.
In July, the figure increased to 5.25-5.5% per annum, but digital gold quotes reacted slightly to the changes. 🪙📈📊
