{"id":17182,"date":"2023-02-01T21:28:34","date_gmt":"2023-02-01T21:28:34","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/federal-reserve-raises-benchmark-interest-rate-by-0-25-disinflationary-process-early-says-powell-economics-bitcoin-news\/"},"modified":"2023-02-01T21:28:34","modified_gmt":"2023-02-01T21:28:34","slug":"federal-reserve-raises-benchmark-interest-rate-by-0-25-disinflationary-process-early-says-powell-economics-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/federal-reserve-raises-benchmark-interest-rate-by-0-25-disinflationary-process-early-says-powell-economics-bitcoin-news\/","title":{"rendered":"Federal Reserve Raises Benchmark Interest Rate by 0.25%, Disinflationary Process ‘Early,’ Says Powell\u00a0 \u2013 Economics Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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The U.S. Federal Reserve raised its benchmark federal funds rate by 0.25% on Wednesday after markets priced in near 100% certainty the Federal Open Market Committee (FOMC) would codify the quarter-point increase. The FOMC statement further detailed that ongoing rate increases are anticipated to bring inflation down to the target range of 2%.<\/strong><\/p>\n

FOMC Outlines Expectations for Future Rate Hikes<\/h2>\n

The central bank of the United States raised the federal funds rate on Wednesday, increasing it by 0.25% to the current range of 4.5% to 4.75%. The FOMC detailed<\/a> in a statement that indicators show there has been \u201cmodest growth in spending and production\u201d and job gains have been \u201crobust in recent months.\u201d However, the committee says that while inflation has dropped, it \u201cremains elevated,\u201d and it believes the conflict in Ukraine is \u201ccausing tremendous human and economic hardship.\u201d<\/p>\n

\u201cThe committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run,\u201d the FOMC statement details. \u201cIn support of these goals, the committee decided to raise the target range for the federal funds rate to 4-1\/2 to 4-3\/4 percent. The committee anticipates that ongoing increases in the target range will be appropriate in order to attain a stance of monetary policy that is sufficiently restrictive to return inflation to 2 percent over time.\u201d<\/p>\n

The federal funds rate has been increased eight consecutive times and is now at its highest level in about 15 years. The Federal Open Market Committee has stated that \u201congoing increases\u201d would be appropriate at every meeting since March. Market analysts and investors have shown conflicting signals over the Fed rate hikes, with some expecting the central bank to soften its stance, and others anticipating that Jerome Powell will continue to raise the benchmark interest rate. The Fed\u2019s rate hike on Wednesday was the smallest since March 2022.<\/p>\n

On Wednesday, Powell said<\/a> that monetary tightening will continue \u201cuntil the job is done\u201d and added that the \u201cdisinflationary process that is now underway is really in its early stages.\u201d The crypto economy<\/a> appeared unfazed by the Fed\u2019s decision on Wednesday, and prices jumped 0.9% higher after Powell\u2019s comments. Bitcoin (BTC)<\/a> rose 1.4% and ethereum (ETH)<\/a> jumped more than 2% higher.<\/p>\n

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Bitcoin (BTC<\/a>) prices rose after the FOMC statement on Wednesday.<\/figcaption><\/figure>\n

After sliding during the early morning trading sessions on Wednesday, U.S. stocks regained most of the losses following the Federal Open Market Committee statement. All four U.S. benchmark equity indexes are in the green as Wednesday\u2019s closing bell nears. Precious metals such as gold and silver<\/a> also saw gains, with gold up 0.79% and silver up 0.72% following the Fed\u2019s statement.<\/p>\n

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0.25%<\/a>, 15 years<\/a>, benchmark interest rate<\/a>, Bitcoin<\/a>, Central Bank<\/a>, conflicting signals<\/a>, crypto economy<\/a>, disinflationary process<\/a>, early stages<\/a>, economics<\/a>, Federal Funds Rate<\/a>, Federal Reserve<\/a>, FOMC<\/a>, FOMC statement<\/a>, Gains<\/a>, gold<\/a>, inflation<\/a>, Investors<\/a>, jerome powell<\/a>, job gains<\/a>, Losses<\/a>, March<\/a>, market analysts<\/a>, maximum employment<\/a>, Monetary Policy<\/a>, Monetary Tightening<\/a>, Precious Metals<\/a>, Raise<\/a>, Restrictive<\/a>, silver<\/a>, softer stance<\/a>, statement<\/a>, stocks<\/a>, target range<\/a>, Trading sessions<\/a>, Ukraine conflict<\/a><\/div>\n<\/div>\n

What are your thoughts on the Federal Reserve\u2019s decision to raise the benchmark interest rate and how will it affect the economy in the long run? Let us know your thoughts about this subject in the comments section below.<\/strong><\/em><\/p>\n

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\nJamie Redman <\/h6>\n

\nJamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.

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Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n

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