Unchanged Interest Rates: The Federal Reserve's Impact on Crypto

• Federal Reserve Holds Steady on Interest Rates
• Continued Endeavour to Combat Inflation
• Federal Reserve Sustains Interest Rates at 5.25% - 5.50%
• Pause in Monetary Policy Actions
• Potential Interest Rate Cuts in 2024

Federal Reserve Holds Steady on Interest Rates

In a much-anticipated decision, the Federal Reserve disclosed its intention to keep current interest rates steady. This marks the third consecutive meeting where the agency has decided to maintain the benchmark interest rate norm, signalling a slight slackening of what was previously an assertive tightening campaign.

Continued Endeavour to Combat Inflation

Despite keeping the interest rates constant, the Federal Reserve did not deter from its continuous ambition of reducing inflation to its 2% target. There was no persuasion to shift its course and increase interest rates. Speculations have started to emerge that an interest rate reduction could be on the horizon in 2024.

Federal Reserve Sustains Interest Rates at 5.25% - 5.50%

Unchanged interest rates continue to remain between 5.25% and 5.50%. This decision comes in the face of the United States economy's evident vulnerability over the past year. As inflation remained a constant threat, the Federal Reserve embarked on a yearly campaign to raise interest rates, which appears to have decelerated based on the latest decision.

Pause in Monetary Policy Actions

The decision to maintain the current interest rates signifies a continued hiatus in monetary policy actions, a trend that commenced in July. Despite the pause, interest rates linger at a 22-year peak of 5.25% to 5.5%. The decision is viewed as a precarious equilibrium that the Federal Reserve strives to achieve. The challenge lies in mitigating inflation whilst avoiding potential harm to the economy through increased job loss.

Potential Interest Rate Cuts in 2024

Although it was previously expected that the Federal Reserve would announce two interest rate cuts in 2024, the latest revelation indicates three expected cuts. This followed the identification of a reduced inflation rate and the economy's potential to evade a recession. Further forecasts anticipate an end to the most assertive rate hike campaign by the Federal Reserve in four decades.

Edited by Jonathan Stoker