Important fast food
- Federal Reserve officials are likely to raise interest rates by 75 basis points at their meeting in November.
- The rate has already seen three increases of that magnitude this year; This would represent the fourth such increase.
- Bitcoin and Ethereum prices fell slightly around the time of the news but have since recovered.
The US central bank, the Federal Reserve, announced plans to raise interest rates after several other rate hikes recently.
An interest rate hike is expected in November
Interest rates will rise again in November, but there are signs that the pace may slow somewhat.
According to reports from The Wall Street JournalFed officials are likely to present a fourth rate hike of 75 basis points at their next meeting on November 1-2. But they will also discuss lowering interest rates in December, effectively slowing the process.
In a speech this morning, Federal Reserve Governor Christopher Waller said the board will have a “very deep discussion about the pace of tightening at our next meeting.” Some officials want to refrain from raising interest rates early next year. But other officials argue that raising interest rates is necessary for the economy.
The Fed has previously raised interest rates by 75 basis points three times this year in September, July and June. These interest rate increases made the interest rate between 3% and 3.25%.
Patrick Harker, president of the Federal Reserve Bank of Philadelphia, outlined his year-end forecast. In a statement carried by Reuters, he expected inflation to be “above 4% by the end of the year.”
The rate hike is likely to have an impact on the crypto market. Although the cryptocurrency is often touted as an inflation hedge, the recent hikes in the Federal Reserve’s interest rates have coincided with the decline in cryptocurrency prices. However, the crypto market has been relatively stable for weeks despite brutal moves in the traditional stock markets.
The cryptocurrency market as a whole is up 0.2% in 24 hours, according to data from CoinGecko.
Disclosure: At the time of writing, the author of this article owns BTC, ETH, and other cryptocurrencies.