Sign Up on MEXC
Highlights
- The Federal Reserve has decided to keep the benchmark overnight interest rate steady at 5.25% to 5.50%.
- Fed officials project a decrease in interest rates by three-quarters of a percentage point by the end of 2024 to reach the 2% inflation target.
- Bitcoin has experienced high price volatility in the last 24 hours, trading in a bearish sentiment with a 0.55% dip to $64,345.
The Federal Reserve (Fed) has decided to keep interest rates steady. This decision leaves the benchmark overnight interest rate in the 5.25% to 5.50% range. The Federal Reserve’s decision comes after a two-year period of aggressive monetary policy tightening. This was in response to a significant inflation surge, reaching a 40-year peak. The central bank’s move signals a careful approach towards managing economic growth and inflation pressures.
Despite holding rates constant, Fed officials forecast a decrease in interest rates by three-quarters of a percentage point by the end of 2024. This projection aligns with their commitment to reaching the U.S. central bank’s 2% inflation target. The policy statement highlighted that inflation remains “elevated”. Yet, it shows optimism for economic improvement. It described economic activity as expanding at a solid pace, with strong job gains and a low unemployment rate.
Economic Projections and Inflation Expectations
The Fed’s updated quarterly economic projections indicate a slight adjustment in expectations. The personal consumption expenditures price index, excluding food and energy, is expected to rise at a 2.6% rate by year’s end. This is a slight increase from the 2.4% projection issued in December. The revision reflects sturdier than anticipated progress towards reducing inflation to the targeted rate.
Economic growth forecasts have also been revised upwards. Growth is now anticipated at 2.1% for the year, an improvement from the 1.4% projected in December. Furthermore, the US unemployment rate is expected to end the year at 4%. This is lower than the previously anticipated 4.1% and remains close to the 3.9% rate recorded in February. These adjustments underline a more optimistic outlook for the economy, despite the challenges of managing inflation.
Bitcoin Outlook After Fed Report
Bitcoin, the leading cryptocurrency by market capitalization, has experienced high price volatility in the last 24 hours. Currently, BTC is trading in a bearish sentiment, where its price has recorded a price dip of 0.55% and is exchanging hands at $64,345. This comes as BTC hit its all-time high of $73,750.07 on March 14 and has since recorded a price decrease of 12.85%.
Moreover, the trading volume of BTC has also recorded a significant decrease of 12.16% and is currently above $62 billion, and its market capitalization is down by 0.62% to $1.27 trillion. Bulls in Bitcoin have established a resistance level of $65,299.62, while the bears hold the support at the level of $60,807.79.
Read Also: Spot Ethereum ETF: Approval Odds Drop As SEC Eyes Securities Tag
- Solana Treasury Company SOL Strategies Gets Approval To List On Nasdaq
- Fidelity, Grayscale, VanEck Dump Ethereum Amid ETH Price Crash
- Ethereum Treasury Firm SharpLink Confirms Compliance Amid Nasdaq Oversight
- Trump Media Acquires 684M CRO for Cronos Treasury, Strikes Deal with Crypto.com
- SEC and CFTC To Host Roundtable To ‘Harmonize’ Regulatory Frameworks for Crypto
- Chainlink Price Eyes $55 as Reserve Holdings Jump With 43,937 LINK Addition
- Cardano Price Targets 30% Surge as Top Economist Calls for Fed Cut
- ETH Price Forecast as Grayscale’s Covered Call Ethereum ETF Spurs Optimism — Is $8,500 in Sight?
- Bitcoin Price Prediction as SEC Unveils Agenda for Crypto Regulation — Is $200K Next?
- ONDO Price Prediction Amid Bitget Collaboration on Tokenized Stocks and ETFs: Is $2 Next?
