• The Federal Reserve Board has decided to increase interest rates by a quarter of a percentage point.
• Crypto markets responded positively with Bitcoin prices breaching the $24k mark.
• Stocks increased on Tuesday as the Fed began its two-day meeting, signaling a slowdown in their fight against inflation.
Fed Raises Interest Rate by 25 BPS
The Federal Reserve Board recently decided to raise interest rates by another quarter of a percentage point. This is the smallest rate rise since March 2022 and signals a moderation in the pace of rapid tightening throughout 2022.
Crypto Market Reacts Positively
The crypto market responded positively with Bitcoin price even breaching $24k mark. Other altcoins traded in green as well and Bitcoin was trading at $23,823 at the time of writing, up 4% in the last 24 hours according to CoinMarketCap (CMC).
Stocks Increase After Fed Meeting
Stocks increased on Tuesday as the Federal Reserve began its two-day meeting. Technology stocks rose 9% monthly and 10-year Treasury yields dropped from 3.9 percent at year’s conclusion to 3.5 percent.
Fed Continues To Monitor Inflation
In light of continuing inflationary pressures, Chairman Jerome Powell will delay future raises in interest rates until further notice while still being vigilant about inflation control efforts.
Conclusion
The Fed’s decision to implement its smallest rate rise since March 2022 signals both a moderation in tightness and an effort towards controlling inflationary risks that could arise due to too rapid an increase in prices or yield levels. The crypto market reacted positively with Bitcoin price even breaching $24k mark, while stocks also rose following this news.