Money

Fed hikes rates to 22-year high

Published

1 year ago

July 27, 2023

ticker NEWS

The Federal Reserve raised interest rates on Wednesday, bringing them to a 22-year high.

Fed Chairman Jerome Powell announced a quarter-point hike, taking the benchmark federal-funds rate to a range between 5.25% and 5.5%.
This marked the 11th increase in the past 12 meetings, following a brief pause in the previous month. Powell signaled the possibility of another increase before the year’s end as the Fed continues to grapple with stubbornly high inflation.

Powell stated that the process of reducing inflation to the target of 2% still has a long way to go.

The Fed believes that they will need to hold policy at restrictive levels for some time and may consider raising rates further if necessary. Despite the challenging inflationary environment, the Fed staff is no longer forecasting a recession, although they expect a noticeable slowdown in growth later this year.

Too strong economy

The strong economy, with robust job gains and moderate growth, has prompted the Fed to maintain a cautious approach to rate cuts. Powell ruled out the possibility of cutting rates this year, indicating that they would only consider cutting rates when they are comfortable doing so.

The higher interest rates could impact consumers, making borrowing for homes and cars more expensive, potentially dampening consumer spending. Credit card interest rates have also surged to the highest levels in recent years. However, the positive stock run has continued, with the Dow hitting its best streak since 1987.

The Fed’s next meetings are scheduled for September, November, and December, where further policy decisions will be made based on economic developments and inflationary pressures.

Leaders

U.S. Federal Reserve announce rate cut, show great confidence in economy

Published

8 hours ago

September 19, 2024

ticker NEWS

The Federal Reserve has delivered a big rate cut to boost the economy while inflation slows.

The central bank slashed interest rates by a half percentage point, hoping to protect the job market while inflation inches closer to its 2% goal.

Fed Chair Jerome Powell says the decision reflects growing confidence in balancing the economy’s growth with low inflation. #featured #trending

Money

Markets brace for potential 50-point fed rate cut

Published

2 days ago

September 17, 2024

ticker NEWS

Markets are anticipating a significant 50-point rate cut from the US Federal Reserve this week, leading to heightened focus on bond markets and key economic reports.

Financial markets are focused on a potential 50-point rate cut by the US Federal Reserve, as investors anticipate major shifts in economic policy.

The bond markets, already pricing in a borderline hard landing, reflect the expectation of a significant easing cycle over the next two years.

However, experts caution that the Fed could disappoint, as the current economic conditions differ from previous events such as the pandemic or credit crises. #featured #trending

Money

Bitcoin’s Q4 outlook: key factors and upcoming milestones

Published

3 days ago

September 16, 2024

ticker NEWS

Insights into market trends and critical events shaping Bitcoin’s performance

Crypto Corner explores the latest market movements, expert insights and the influence of macroeconomic factors on the crypto industry.

Crypto Corner is hosted by Caroline Bowler, CEO of BTC Markets.

In this episode, Caroline speaks with Matt Willemsen, Head of Research & Content at Collective Shift, about what could drive Bitcoin’s strong performance in Q4. They explore how the current market differs from past cycles, the ongoing Solana vs. Ethereum debate, and the role of project-specific conferences in market trends. Matt previews key Q4 events, including the Solana Breakpoint conference and upcoming altcoin milestones like Uniswap v4 and Polygon 2.0. #crypto corner