The Federal Reserve left interest rates unchanged for the third time, marking the end of its aggressive rate-hike campaign and forecasting a series of rate cuts starting in 2024. In a unanimous decision, officials agreed to keep the benchmark federal funds rate at 5.25% to 5.5%, the highest level since 2001. For the first time since March 2021, there were no further rate hike expectations.
Chairman Jerome Powell made it clear that the forecasts do not constitute a preset plan. He has kept open the possibility of further rate increases as needed to control a surge in price pressures. However, he did confirm that there was discussion of considering rate cuts at this week's meeting.
In early December, Powell warned the market against holding out for a rate cut in the first quarter of next year, saying it was too early to judge whether the policy stance was tight enough and to predict when it might be relaxed. Powell and other policymakers agreed that achieving the 2% inflation target will be difficult. Policymakers' commitment to keep interest rates high enough and long enough to ensure that price inflation returns to target has led market participants to expect a rate cut as early as March. #币安合约锦标赛 #BTC #etf #Ledger $BTC #INJ $ETH $BNB
While forecasting lower inflation levels this year and next, the Fed’s preferred price measure (excluding food and energy) is expected to grow 2.4% in 2024. There was a slight downward revision to economic growth next year, while the unemployment forecast remained unchanged.
Three major positives: BTC and ETH The Fed’s rate cut has a significant impact on traditional financial markets as well as the cryptocurrency market, especially Bitcoin and other cryptocurrencies. We see three major positives for BTC and ETH: ETF approval BTC halving Fed rate cut In a low interest rate environment, investors tend to look for high-yield assets to achieve their desired returns. This environment may be favorable for Bitcoin, a non-interest-bearing asset that has become an attractive investment alternative due to its potential for high returns.