Fed Rate Hike Today: What To Expect
On March 22, the Federal Reserve is expected to announce a quarter-point hike (25bps) in interest rates amidst a global crisis. This decision will have significant repercussions for the world economy and is being closely watched by investors, including those in the cryptocurrency market.
The current crisis has put US-based banks in a vulnerable position, and any further increase in interest rates could cripple them. To address this, the Federal Reserve is expected to provide assurances that the banking crisis will be contained.
The main goal of the Fed so far has been to contain inflation, which is still high, particularly in the service sector. The ongoing Russia-Ukraine war has further complicated matters, leading to an increase in food prices as Russia-Ukraine is a major exporter of wheat.
Economists predict that the central bank will also release projections about the economy and the path of rate hikes, though this has not been confirmed yet. The Fed’s decision will have a significant impact on the global economy, and investors will be watching closely for any indications of future market trends.
Impact On Bitcoin & Crypto Markets
Cryptocurrency investors are keeping a close eye on the Federal Reserve’s policy meeting as they await the outcome of the meeting. Cryptocurrency prices have been trading slightly higher in anticipation of the decision, with Bitcoin leading the way above the $28,000 level. However, experts predict a slight fall in prices if the Fed announces a 25 basis points increase. Despite this, Bitcoin’s open interest has increased to $13 billion, indicating that investors remain confident in the cryptocurrency’s long-term prospects.
Disclaimer: Blockmanity is a news portal and does not provide any financial advice. Blockmanity's role is to inform the cryptocurrency and blockchain community about what's going on in this space. Please do your own due diligence before making any investment. Blockmanity won't be responsible for any loss of funds.
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