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The Federal Reserve announced a rate raise by 75 basis points for the fourth consecutive meeting. Bitcoin, which initially saw a sharp decline following the Fed rate announcement, appears to be slowly recovering. In the last one hour, Bitcoin (BTC) is trading on a slight decline but the picture could soon turnaround. As of writing, BTC price stands at $20,694.54, up 1.20% in the last 24 hours, according to price tracking platform CoinMarketCap.
Potential Slower Pace Going Forward
The central bank, however, hinted at a potential slower pace, going forward. The policy statement from Fed said,
“In determining the pace of future increases in the target range the committee will take into account the cumulative tightening of monetary policy, the lags with which monetary policy affects economic activity and inflation and economic and financial developments.”
Speaking at the FOMC press conference on Wednesday, Fed chair Jerome Powell indicated at slowing down of rate hike very soon. Powell said the time to slow rate hikes may come ‘as soon as next meeting’. This could be an ecouraging sign for the market that anticipated a 75 basis point rise this time around with a signal of slowing down of interest rate hike in December 2022.
NEW: Jerome Powell says the time to slow rate hikes may come "as soon as the next meeting or the one after that" https://t.co/SabN0ghO6z pic.twitter.com/EuZ0eGA6XV
— Bloomberg (@business) November 2, 2022
Inflation Remains High
The Fed committee observed that inflation remained high in the country as modest growth was seen in spending and production. “Inflation remains elevated, reflecting supply and demand imbalances related to the pandemic, higher food and energy prices, and broader price pressures.” However, the committee said the rate of unemployment remained low in recent months. Job gains have been robust in recent months, and the unemployment rate has remained low, the committee noted.
The committee also mentioned the impact of the Russia Ukraine war on the global economy. The war and related events are creating additional upward pressure on inflation and are weighing on global economic activity, it explained.
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