On September 20, the Federal Reserve System (FRS) of the United States kept the range of the key interest rate at 5.25-5.5% per annum.
The decision aligned with market expectations. According to the FRS, inflation in the United States remains high, unemployment is low, and economic activity continues to grow at a steady pace.
"The U.S. banking system is strong and resilient. Tighter credit conditions for households and businesses are likely to affect economic activity, employment, and inflation. The scale of these consequences remains uncertain. The Committee continues to closely monitor inflation risks," the press release stated.
The #FRS will continue to strive for maximum employment and 2% inflation in the long term. If necessary, the agency is prepared to adjust the range of the key interest rate.
On September 13, the #U.S. Bureau of Labor Statistics published a consumer price report. The index value turned out to be higher than market expectations. In annual terms, the growth slowed from 4.7% to 4.3%, and on a monthly basis, it increased from 0.2% to 0.3%.
The #Nasdaq Composite, S&P 500, and Dow Jones Industrial Average indices reacted mildly to the FRS decision, losing less than 0.5%. The cryptocurrency market barely reacted to the news. According to CoinGecko, the quotes of the largest #cryptocurrencies by market capitalization showed no significant movement.
#Bitcoin initially dropped below $27,100, then returned to around $27,200. At the time of writing, the total cryptocurrency market capitalization remained above $1.1 trillion.
In February 2023, the key interest rate was raised to 4.5-4.75% per annum. In March, the rate reached 4.75-5%, and in May, it was 5-5.25%.
In June, the FRS, for the first time since March 2022, kept the range of the key interest rate at 5-5.25% per annum. The price of Bitcoin fell below $26,000.
In July, the rate increased to 5.25-5.5% per annum, but the price of digital gold reacted only slightly to the changes. $BTC $ETH $BNB