{"id":20533,"date":"2023-05-03T20:36:53","date_gmt":"2023-05-03T20:36:53","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/federal-reserve-raises-interest-rate-by-25bps-insists-us-banking-system-is-sound-and-resilient-bitcoin-news\/"},"modified":"2023-05-03T20:36:53","modified_gmt":"2023-05-03T20:36:53","slug":"federal-reserve-raises-interest-rate-by-25bps-insists-us-banking-system-is-sound-and-resilient-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/federal-reserve-raises-interest-rate-by-25bps-insists-us-banking-system-is-sound-and-resilient-bitcoin-news\/","title":{"rendered":"Federal Reserve Raises Interest Rate by 25bps, Insists \u2018US Banking System Is Sound and Resilient\u2019 \u2013 Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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The U.S. Federal Reserve, in conjunction with the Federal Open Market Committee (FOMC), announced on Wednesday that the central bank would raise the federal funds rate by 25 basis points (bps), as was widely expected by the market. This marks the tenth consecutive occasion in which the Fed has raised interest rates since the initial 25bps increase in March 2022.<\/strong><\/p>\n

FOMC Announcement Says \u2018Additional Policy Firming May Be Appropriate\u2019<\/h2>\n

At 2:00 p.m. Eastern Time, the central bank raised the benchmark interest rate citing that economic activity expanded \u201cat a modest pace in the first quarter.\u201d The Fed\u2019s announcement<\/a> noted that unemployment has been low but \u201cinflation remains elevated.\u201d The FOMC announcement further addressed the issues in the U.S. banking industry<\/a> and the committee emphasized that the \u201cU.S. banking system is sound and resilient.\u201d<\/p>\n

The Fed\u2019s unbroken chain of rate hikes is a testament to the bank\u2019s unwavering commitment to getting inflation down. The FOMC\u2019s press release notes a priority to get the inflation rate down to the 2% range. \u201cIn support of these goals, the committee decided to raise the target range for the federal funds rate to 5 to 5-1\/4 percent,\u201d the FOMC said on Wednesday.<\/p>\n

The news caused all four major U.S. benchmark stock indexes to jump, alongside a modest spike in precious metals<\/a> and crypto markets<\/a>. However, investors at the time were still waiting to hear what Fed chairman Jerome Powell had to say concerning rates going forward. It\u2019s been speculated that the Fed will stop its rate hikes for the rest of the calendar year.<\/p>\n

While some market observers expect the central bank to pivot and cut the benchmark bank rate, the FOMC said the committee still anticipates that some \u201cadditional policy firming may be appropriate to return inflation to 2 percent over time.\u201d The FOMC message does not explain whether or not the Fed will keep the rate the same at the meeting in June.<\/p>\n

During the press conference, Powell addressed<\/a> the U.S. debt limit<\/a> and expressed hope that a resolution would be reached. Consistent with his previous statements, the Fed believes that failure to raise the debt limit could lead to financial disruption. As for the Fed\u2019s next move, Powell stated that the central bank is \u201cprepared to do more if greater monetary policy is warranted.\u201d<\/p>\n

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Banking system<\/a>, Crypto markets<\/a>, economics<\/a>, Federal Reserve<\/a>, Financial Decisions<\/a>, FOMC<\/a>, inflation<\/a>, interest rates<\/a>, jerome powell<\/a>, Monetary Policy<\/a>, Precious Metals<\/a>, Stock Market<\/a>, U.S. economy<\/a><\/div>\n<\/div>\n

What do you think the Federal Reserve\u2019s decision to raise interest rates means for the U.S. economy? Share your thoughts and opinions 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 7,000 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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