On Wednesday, May 3, the US Federal Reserve System (FRS) raised key rate range by 25 basis points, up to 5–5.25% per annum.
The decision coincided with market expectations. According to the Fed, US inflation remains high. The agency still intends to return the figure to 2%.
“Economic activity grew at a modest pace in the first quarter. In recent months, job growth has been robust and the unemployment rate has remained low. Inflation remains high,” the press release says.
On April 12, the US Federal Bureau of Labor Statistics published a report on consumer prices. The index value turned out to be slightly better than analysts’ expectations – growth in April amounted to 0.1% in monthly terms and 5% in annual terms.
Both the stock and cryptocurrency markets reacted to the news with restraint. According to CoinGecko, the quotes of the largest digital assets by capitalization did not show significant dynamics.
At the time of writing, the total digital asset market capitalization is $1.23 trillion.
Earlier, the head of the Fed, Jerome Powell, during a speech before Congress, said that there was a high probability of further tightening of monetary policy. However, the collapse of American credit institutions and the Swiss investment bank Credit Suisse made investors expect softer steps from the regulator.
Recall that in February the Fed raised the key rate range by 25 basis points, to 4.5-4.75% per annum. Quotes of the first cryptocurrency reacted with growth above $23,000.
In March, bitcoin held above $28,000 amid the decision of the Fed to raise the rate to 4.75-5% per annum. At the end of the month, Bitcoin tested levels above $29,000.
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Cryplogger Newsletters: Keep your finger on the pulse of the bitcoin industry!
On Wednesday, May 3, the US Federal Reserve System (FRS) raised key rate range by 25 basis points, up to 5–5.25% per annum.
The decision coincided with market expectations. According to the Fed, US inflation remains high. The agency still intends to return the figure to 2%.
“Economic activity grew at a modest pace in the first quarter. In recent months, job growth has been robust and the unemployment rate has remained low. Inflation remains high,” the press release says.
On April 12, the US Federal Bureau of Labor Statistics published a report on consumer prices. The index value turned out to be slightly better than analysts’ expectations – growth in April amounted to 0.1% in monthly terms and 5% in annual terms.
Both the stock and cryptocurrency markets reacted to the news with restraint. According to CoinGecko, the quotes of the largest digital assets by capitalization did not show significant dynamics.
At the time of writing, the total digital asset market capitalization is $1.23 trillion.
Earlier, the head of the Fed, Jerome Powell, during a speech before Congress, said that there was a high probability of further tightening of monetary policy. However, the collapse of American credit institutions and the Swiss investment bank Credit Suisse made investors expect softer steps from the regulator.
Recall that in February the Fed raised the key rate range by 25 basis points, to 4.5-4.75% per annum. Quotes of the first cryptocurrency reacted with growth above $23,000.
In March, bitcoin held above $28,000 amid the decision of the Fed to raise the rate to 4.75-5% per annum. At the end of the month, Bitcoin tested levels above $29,000.
Found a mistake in the text? Select it and press CTRL+ENTER
Cryplogger Newsletters: Keep your finger on the pulse of the bitcoin industry!
