The Federal Reserve announced a rate hike of 75 basis points for the fourth consecutive meeting. Bitcoin, which initially saw a steep decline after the Fed rate announcement, appears to be slowly recovering. Over the past hour, Bitcoin (BTC) has been trading slightly lower, but the situation may soon change. At the time of writing, the BTC price stands at $20,694.54, up 1.20% in the past 24 hours, according to price-tracking platform CoinMarketCap.
Potentially slower pace in the future
The central bank, however, hinted at a potentially slower pace going forward. The Fed policy statement said,
“In determining the pace of future increases in the target range, the committee will take into account the cumulative tightening of monetary policy, the lags with which monetary policy affects economic activity and inflation, and economic and financial developments.”
Speaking at the FOMC press conference on Wednesday, Fed Chairman Jerome Powell indicated that he would slow rate hikes very soon. Powell said the time to slow rate hikes could come “as soon as the next meeting.” This could be an encouraging sign for the market, which this time was anticipating a rise of 75 basis points with a signal of a slowdown in the rise in interest rates in December 2022.
NEW: Jerome Powell says time to slow rate hikes could come ‘as soon as the next meeting or the one after’ https://t.co/SabN0ghO6z pic.twitter.com/EuZ0eGA6XV
—Bloomberg (@business) November 2, 2022
Inflation remains high
The Fed committee observed that inflation remained high in the country as modest growth was seen in spending and production. “Inflation remains elevated, reflecting pandemic-related supply and demand imbalances, rising food and energy prices and broader price pressures.” However, the committee said the unemployment rate has remained low in recent months. Job gains have been robust in recent months and the unemployment rate has remained low, the committee noted.
The committee also mentioned the impact of the Russian-Ukrainian war on the world economy. The war and related events are creating additional upward pressure on inflation and weighing on global economic activity, he said.
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