Bitcoin Reacts to US Federal Reserve’s Decision to Maintain Interest Rates
The US Federal Reserve has remained true to its recent monetary policy by maintaining the key interest rates at the same levels of 4.25% to 4.5%.
Bitcoin’s price slipped by around a grand immediately after the announcement went live, but the impact is expected to be minimal in the following days.
Today’s FOMC meeting didn’t bring any big surprises as the US central bank said it continues to strive for a 2% inflation rates over the longer run, which is somewhat close to the actual numbers for the previous month.
To achieve its goals, which also include reaching maximum employment, the Fed “decided to maintain the target range for the federal funds rate at 4-1/4 to 4-1/2 percent.”
While the financial markets had priced such a development, some hoped that Fed Chair Jerome Powell would succumb to US President Trump’s warnings and reduce the rates. Recall that the POTUS threatened to fire Powell if he refused to lower the rates.
Still, BTC’s price slipped immediately after the Fed’s announcement went live, going from over $96,800 to under $96,000. It has recovered almost half of the losses as of press time, but still trades about a grand lower from its peak earlier today of over $97,600.
The post Bitcoin Reacts to US Federal Reserve’s Decision to Maintain Interest Rates appeared first on CryptoPotato.
