The increase decreed by the FED It exceeds the 0.5% increased last May, which indicates a tightening of the measures to deal with the growing inflation rates that are shaking the US economy.
- FED increases interest rates by 0.75%.
- Federal Open Market Committee voted to raise them an additional 0.25% to what was seen in May.
- Consumer Price Index stood at 8.6% in May this year.
- Crypto market goes down this June 15.
The US Federal Reserve (FED)the agency responsible for the monetary policies of the North American nation, today announced a new increase in interest rates, which this time increased by 0.75%, as opposed to the 0.5% that rose last month of May.
FED increases interest rates by 0.75%
This was stated by the president of the Fed, Jerome Powell, who made the announcement after the meeting of the Federal Open Market Committee held today. There he indicated that the rates increased by 0.75% (75 basis points), with which the short-term reference rate oscillates in a range of 1.5% to 1.75%.
Regarding the decision to increase interest rates to 0.75%, Powell indicated that the decision came after a vote held by the members of the Federal Open Market Committeewho chose to increase the levels a further 25% to address the rising inflationary levels that are shaking the US economy.
It is worth noting that this would be the third increase in the last three months decreed by the FED. In this regard, analysts agree that this possibility was on the table once the consumer price index (CPI) recorded record highs in the last four years after standing last month at 8.6%. The latter implies a more pronounced increase in the prices of food, real estate, rent and gasoline, as indicated by the US Bureau of Labor Statistics.
Let us bear in mind that at the last meeting Powell indicated that the measures are aimed at reducing inflation, and in this regard he commented:
“Inflation is too high…it is essential that we bring inflation down if we want to have a sustained period of strong labor market conditions that benefit everyone.”
Fit higher than expected
The adjustment of an additional 0.25% to what was forecast is associated with the quantitative adjustment policy that the FED to deal with inflation rates. However, this measure further limits the amount of working capital that goes to different sectors of the economy, such as stock markets and cryptocurrencies.
Although Powell was not very sure about such a high increase, this is within the levels contemplated by the agency to support the recovery of the US economy.
Markets react downward
Following Powell’s announcement, both the crypto market and the stock market reacted lower.
In the stock market we have to NASDAQ, Dow Jones and S&P500 despite scoring higher compared to what was seen yesterday, they presented slight falls after the news of the increase in interest rates.
For its part, the crypto market is going down strongly, so we have Bitcoin which is around the barrier of USD $20,000, while ethereum it is very close to USD $1,000 per unit.
Angel Di Matteo version / DailyBitcoin
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