Fed Raises Rates By 75 Basis Points In This Year’s Fifth Hike
The Tokenist | Sep 22, 2022 02:51AM ET
At an FOMC meeting on Wednesday, the Fed announced an interest rate hike of 75 BPS, bringing it up to 3%.
The Federal Reserve the Fed would raise interest rates by 75 BP (NYSE:BP) for the third consecutive time. Today, this expectation was confirmed.
At 2 PM Eastern Time, the Federal Reserve announced raising the interest rate by 75 points. This is the fifth hike this year, bringing the target range to about 3%. America’s central bank made its previous increases in March by 25 points, in May by 50, and by 75 in June and July.
This move was widely anticipated and is in line with the remarks made by Jerome Powell, the Fed’s chairman, in his 10-minute Jackson Hole speech. The Fed is committed to bringing inflation down to 2%, which is still a somewhat distant goal considering the current rate stands at 8.3%.
h2 The Markets Ahead of the Announcement/h2While the market has been bearish over the previous month—with crypto being the most affected sector—Wednesday showed cautious optimism leading up to the Fed’s announcement. The day saw modest rises across the market.
Major market indices like S&P 500 and the Dow were up by around 0.5% from the market’s opening. Cryptocurrencies showed similar behavior. Bitcoin rose by more than 2% up to $19,300 and Ethereum by more than 3% bringing its price to $1,370.
Us Treasury yields were also rising, leading up to the interest rate hike. The United States 10-Year yield rose by six basis points, bringing it up to over 3.5%. This is the highest it’s been since April 2011.
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.