✅🔴 What is the US interest rate decision?

It is the decision issued by the US central bank (the Federal Reserve) regarding raising, lowering, or maintaining the base interest rate, which determines the cost of borrowing between banks. This rate is also used as a basis for determining the interest on loans and deposits.

🎯 Importance of the interest rate decision

1. A key tool of monetary policy used by the Federal Reserve to control:

* Inflation rates

* Economic growth

* Employment levels

* Currency stability (the dollar)

2. All financial markets (stocks, currencies, gold, cryptocurrencies) await the decision as it is considered a direct indicator of the state of the US economy and the Federal Reserve's future policy.

📊 Results of the interest rate decision and its direct impact

1. If the decision comes as expected → markets move according to the expected scenario.

2. If it is surprising (unexpected raise or cut) → significant volatility occurs.

3. The accompanying statement of the decision (especially the tone of the Federal Reserve's speech) has a strong impact**, even if the interest rate is not changed.

💥Impact of the decision on the cryptocurrency market

The cryptocurrency market is considered high-risk, so:

Raising interest rates = investors flee from risky assets (like Bitcoin and Ethereum) towards safe assets (the dollar, bonds).

Lowering interest rates = risk appetite increases → liquidity is pumped into cryptocurrencies.