The Federal Open Market Committee (FOMC), responsible for U.S. monetary policy, recently met and, as expected, decided to keep interest rates unchanged. However, what really moved the markets were the statements from Federal Reserve Chairman Jerome Powell.
Key points from the meeting:
Interest rates held between 5.25% and 5.50%, as an attempt to contain inflation that remains stubborn.
Powell stated that it is still early to cut rates, and that the Fed is prepared to act firmly if inflation data worsens.
Markets reacted with volatility, with the dollar rising and Bitcoin momentarily falling, reflecting investor nervousness.
Impact on the crypto market:
The expectation of higher rates for a longer period tends to pressure risk assets like cryptocurrencies.
At the same time, the indication that the Fed is vigilant may generate confidence in decentralized assets like Bitcoin, in the event of instability in traditional markets.
