Fed to Raise Interest Rates by 75% Basis Points?
According to the WSJ report of October 21, the US Federal Reserve officials are anticipated to plan an additional interest rate rise of 75 basis points. The article also hinted that authorities would prep to lower their interest rate by December. Fed governor Christopher Waller said that the officials will conduct a “thoughtful discussion about the pace of tightening at our next meeting.”
Fed Vice Chair Lael Brainard and other top officials have expressed their reservations about the continuous climb of 0.75 percentage points, saying that it might eventually affect the economy. However, Loretta Mester, president of the Federal Reserve Bank of Cleveland, has already expressed that she would support a 0.75 basis points raise at the next two meetings of the Fed.
Authorities are in two minds about the decision’s impact on the economy, as seen by conflicting opinions. The previous three sessions saw the Federal Reserve raise the interest rate by 0.75 basis points. The last time the government agency spiked the interest rate by 0.75 percent was in 1994.
Since the crypto market has come into existence, the price performance has been affected by the Federal Reserve’s efforts to counteract the sky-high inflation. Both the leading cryptocurrencies saw price drops in September when officials revealed the latest increase.
What followed was Bitcoin’s price fluctuation between $18,000 and $20,500. Ethereum, too, traded between $1,200 and $1,300, despite the merge. Besides these two, the announcement impaired other cryptocurrencies as well.
Many companies involved in the cryptocurrency industry have declared bankruptcy and lost key executives owing to the bear market the industry has been experiencing.