Last Minute: FED Announced Its Interest Rate Decision! Here is Bitcoin’s (BTC) Initial Reaction!

The Fed has finally shared its interest rate decision, which has been expected for weeks, with the public.

The Fed increased the interest rate by 50 basis points. (Expected was 50 basis points)

bitcoin price responded to the announced interest rate decision with a decrease. BTC price was hovering around $18,320 before the interest rate decision was announced.

FED #interest increased its rate by 50 basis points.

(Expected was 50 basis points)#Bitcoin

— Bitcoin System (@bitcoinsystem) December 14, 2022

Fed Chairman Jerome Powell to Give a Speech at 22:30

At 22:30, Fed Chairman Jerome Powell is expected to give a speech.

Tom Porcelli, chief US economist at RBC Capital Markets, used the following statements about the market before the interest rate decision:

“This bullish cycle should be over by now. We like to say that the Fed has been fighting inflation in recent months. … At this point, they don’t need to keep raising interest rates, but of course they will.”

After a unanimous or near-unanimous vote on interest rates, there will be a heated debate about where monetary policy goes next.

This discussion is expected to be reflected in both the post-meeting statement and Powell’s press conference.

One area where markets expect change is the conversion of the FOMC’s statement that “continued increases in target range will be appropriate” to a more general statement as “some increases” may be needed. While this gives the Fed flexibility for its next move, the market expects that February may be the last interest rate hike for a while. The FED’s next rate decision will be announced on 1 February.

Attention will be paid to whether Powell will clarify the committee’s views on the future of the fight against inflation. Powell will likely reiterate that the Fed will raise interest rates and keep them high until inflation shows concrete signs of a return to the central bank’s 2% target.

*Not investment advice.