Bitcoin Price Dips as Fed Leaves Interest Rates Unchanged

Bitcoin Consolidates as Fed Leaves Rates Unchanged

This week’s decision continues the Federal Reserve’s proactive stance on inflation that began in March 2022. Despite the decision to hold rates, there is still an underlying expectation of another hike before 2023 concludes.

However, the strategic change is evident in the revised forecast for 2024. The Fed plans a decrease to 5.1% rather than the earlier projected 4.6%.

This modification stems from an economy that has defied previous forecasts. By showcasing stronger growth, dwindling unemployment, and moderated inflation by the end of 2023, the Fed’s predictions exude positivity. Such an economic climate, resilient despite increased borrowing costs, negates fears of an imminent recession.

“The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. In support of these goals, the Committee decided to maintain the target range for the federal funds rate at 5-1/4 to 5-1/2 percent. The Committee will continue to assess additional information and its implications for monetary policy,” the Fed said in the policy statement.

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Author: Bary Rahma

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