Fed Chairman Jerome Powell confirmed on Wednesday that the central bank will slow its pace of rate hikes next month. The central bank has raised interest rates 0.75% four times this year in order to combat inflation. It is expected the Fed will at its final meeting next month raise interest rates by 0.5%. The current interest rates are in a reasonable range to contain inflation, however, the fight against inflation is not over and the Fed will likely continue to raise rates until it is over.
Since the beginning of this year, the Fed raised interest rates 6 times, pushing its benchmark rate from 0.25% to 4% – the highest interest rate since the economic crisis in 2008.
Following the news, Bitcoin (BTC) surged nearly 2% to $17,149, its highest price since Nov 11. Meanwhile, Ethereum (ETH) returned to the $1,300 mark after more than half a month of ups and downs because of the FTX crash.
The market has shown positive signs, many cryptocurrencies recorded gains in the range of 1-10%. The Fed will announce December’s interest rate hike on Dec 14.
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