After the FED announced the first interest rate decision of the year, volatility in the markets increased. Approaching the $39,000 limit after the decision bitcoin It was pulled back to $37300 before Powell’s comments.
Highlights of the Decision
We observed that the concerns that the asset purchases will be completed in February have disappeared and the asset purchase program has not been changed.
In line with the expectations, the Fed stated that it would be appropriate to increase interest rates in the near future. At this point, the expectation is that the interest rate hike will be decided at the meeting in March.
“FED kept its interest rate decision constant in line with expectations.
He stated that although the FED kept the interest rate decision constant, an increase would be appropriate in the near future.
FED: The US economy continues to improve, but the pandemic is putting pressure on growth.
The Fed said they would end their asset purchases at the beginning of March.
The first rate hike is expected to come at the meeting on March 16.
The Fed has announced that it can start shrinking the balance sheet after interest rate hikes begin.”
Now, Powell is speaking live after the first meeting of the year.
You can watch Powell’s explanations live in the video below:
*Not Investment Advice.