๐บ๐ธ The Fed maintains its highest interest rates in 22 years, expressing concerns as bond yields surge. ๐๐ผ
๐ฆ The Federal Reserve (Fed) holds interest rates steady at 5.25%-5.5% since July, reflecting concerns about economic strength and inflation.
๐น This is the second time in a row they've decided to keep rates unchanged after 11 hikes, including 4 this year.
๐ช Despite rate hikes, the U.S. economy remains resilient, boasting a 4.9% GDP growth in the last quarter and robust job numbers in September.
๐ค The Fed's stance is now characterized by uncertainty. They're asking: "Have they raised enough?"
๐ Markets and investors are watching closely to answer the next questions: "How long will they keep rates high?" and "When will they lower them?"
๐ณ๏ธ With 2024 being a presidential election year, the Fed is preserving flexibility, making it difficult for markets to predict future rate actions.
๐ The recent surge in U.S. bond yields, driven by factors such as stronger-than-expected economic growth, high inflation, and the Fed's firm stance, is worth noting.
๐ผ Some policymakers, like Fed Dallas President Lorie Logan, suggest a temporary pause in rate hikes. ๐๏ธ
๐ช The reaction in Bitcoin and U.S. stock prices has been positive as well. ๐
