{"id":63620,"date":"2023-09-20T16:41:54","date_gmt":"2023-09-20T20:41:54","guid":{"rendered":"https:\/\/ifintechworld.com\/markets\/crypto\/fed-leaves-interest-rates-unchanged-but-more-hikes-still-on-the-table\/"},"modified":"2023-09-20T16:41:57","modified_gmt":"2023-09-20T20:41:57","slug":"fed-leaves-interest-rates-unchanged-but-more-hikes-still-on-the-table","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=63620","title":{"rendered":"Fed Leaves Interest Rates Unchanged, But More Hikes Still on the Table"},"content":{"rendered":"
\n

As expected, the Federal Reserve (Fed) left benchmark interest rates in the US unchanged at 5.25-5.5% on Wednesday.<\/p>\n

Bitcoin (BTC) fell just over 1% and was last trading just under $27,000, though still remains fairly close to monthly highs.<\/p>\n

Despite the pause, Fed Chairman Jerome Powell said in his post-policy announcement remarks that another interest hike later this year remains possible, with analysts thus referring to Wednesday\u2019s Fed announcement as a \u201chawkish pause\u201d.<\/p>\n

In the Fed\u2019s updated dot-plot \u2013 a chart released quarterly that summarizes where Fed policymakers project US interest rates will be in the coming years \u2013 12 of 19 Fed policymakers predicted another 25-bps interest rate hike this year.<\/p>\n

The new dot-plot signaled that Fed policymakers expect just two rate cuts in 2024, down from the previous projection of four.<\/p>\n

Fed policymakers also upped their growth expectations for the US economy, expecting growth of 2.1%, reflecting increased confidence at the central bank that a \u201csoft-landing\u201d for the US economy can still be achieved.<\/p>\n

A \u201csoft landing\u201d is defined as the Fed managing to bring inflation back under control with its interest rate hikes without pushing the economy into recession.<\/p>\n

The updated dot plot and economic projections appear not to have surprised the market much, with macro investors having seemingly spent the last few week pricing in a higher-for-longer interest rate scenario from the central bank.<\/p>\n

The US Dollar Index (DXY) help above 105, close to six-month highs, while the US 2-year government bond yield held above 5.1% and close to 22-year peaks.<\/p>\n

Bitcoin Market Little Affected By Fed Policy Decision<\/strong><\/h2>\n

The latest policy announcement appears not to have impacted sentiment in the Bitcoin market too much.<\/p>\n

While the Fed\u2019s sudden policy shift towards an aggressive tightening cycle in 2022 was a major driver of last year\u2019s Bitcoin bear market, macro themes have had less impact on the cryptocurrency this year.<\/p>\n

Given good progress on bringing US inflation back to the Fed 2.0% goal in 2023, a sense that the \u201cworst is behind us\u201d when it comes to Fed monetary policy tightening has seemingly led to a sense of calm in the crypto space, at least, with regards to the macro outlook.<\/p>\n

Bitcoin seems comfortable with the idea that the Fed might hike interest rates one more time this year, likely due to continued expectations for the start of a new interest rate cutting cycle in 2024, even if that cutting cycle is now expected to be less aggressive.<\/p>\n

Bitcoin traders are now trying to assess whether the cryptocurrency can muster up sufficient price momentum to break out of its recent multi-week $25,000-$28,500ish range.<\/p>\n

Price Risks Tilted to the Upside<\/strong><\/h2>\n

Indeed, the cryptocurrency appears to now be stuck in something of a no man\u2019s land, hovering in the middle of this aforementioned range in the $27,000s and just below its 200DMA.<\/p>\n

If tail risks materialize, like another inflation surge that forces more than one further interest rate hike from the Fed, or another major crypto exchange collapse, a drop back to the low $20,000s, or even lower, remains a possibility.<\/p>\n

US authorities continues to dig into Binance\u2019s affairs with the SEC currently suing the exchange over operating illegally in the US and over accusations of fraud \u2013 a Binance collapse would be a crypto catastrophe thanks to their dominant market position.<\/p>\n

But tail risks aside, with Bitcoin well established as a crypto safe haven (there is no risk the US SEC will label it a security) and spot ETF approvals expected in the US in the coming quarters, price risks remain tilted to the upside.<\/p>\n

A break above $28,500 could be the catalyst for a steady grind back to 2023\u2019s highs, as investors eye another upcoming bullish in the form of next year\u2019s Bitcoin halving.<\/p>\n<\/p><\/div>\n

Read the full article here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

As expected, the Federal Reserve (Fed) left benchmark interest rates in the US unchanged at 5.25-5.5% on Wednesday. Bitcoin (BTC) fell just over 1% and was last trading just under $27,000, though still remains fairly close to monthly highs. Despite the pause, Fed Chairman Jerome Powell said in his post-policy announcement remarks that another interest […]<\/p>\n","protected":false},"author":1,"featured_media":63621,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[243],"tags":[83],"class_list":["post-63620","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crypto","tag-featured"],"yoast_head":"\nFed Leaves Interest Rates Unchanged, But More Hikes Still on the Table | iFintechWorld<\/title>\n<meta name=\"description\" content=\"As expected, the Federal Reserve (Fed) left benchmark interest rates in the US unchanged at 5.25-5.5% on Wednesday.Bitcoin (BTC) fell just over 1% and was\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/ifintechworld.com\/?p=63620\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Fed Leaves Interest Rates Unchanged, But More Hikes Still on the Table | iFintechWorld\" \/>\n<meta property=\"og:description\" content=\"As expected, the Federal Reserve (Fed) left benchmark interest rates in the US unchanged at 5.25-5.5% on Wednesday.Bitcoin (BTC) fell just over 1% and was\" \/>\n<meta property=\"og:url\" content=\"https:\/\/ifintechworld.com\/?p=63620\" \/>\n<meta property=\"og:site_name\" content=\"iFintechWorld\" \/>\n<meta property=\"article:published_time\" content=\"2023-09-20T20:41:54+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-09-20T20:41:57+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/09\/adobestock-345880433___media_library_original_1200_800.jpeg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"800\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"News Room\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"News Room\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/ifintechworld.com\/?p=63620#article\",\"isPartOf\":{\"@id\":\"https:\/\/ifintechworld.com\/?p=63620\"},\"author\":{\"name\":\"News Room\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61\"},\"headline\":\"Fed Leaves Interest Rates Unchanged, But More Hikes Still on the Table\",\"datePublished\":\"2023-09-20T20:41:54+00:00\",\"dateModified\":\"2023-09-20T20:41:57+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/ifintechworld.com\/?p=63620\"},\"wordCount\":636,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/ifintechworld.com\/#organization\"},\"keywords\":[\"Featured\"],\"articleSection\":[\"Crypto\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/ifintechworld.com\/?p=63620#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/ifintechworld.com\/?p=63620\",\"url\":\"https:\/\/ifintechworld.com\/?p=63620\",\"name\":\"Fed Leaves Interest Rates Unchanged, But More Hikes Still on the Table | iFintechWorld\",\"isPartOf\":{\"@id\":\"https:\/\/ifintechworld.com\/#website\"},\"datePublished\":\"2023-09-20T20:41:54+00:00\",\"dateModified\":\"2023-09-20T20:41:57+00:00\",\"description\":\"As expected, the Federal Reserve (Fed) left benchmark interest rates in the US unchanged at 5.25-5.5% on Wednesday.Bitcoin (BTC) fell just over 1% and was\",\"breadcrumb\":{\"@id\":\"https:\/\/ifintechworld.com\/?p=63620#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/ifintechworld.com\/?p=63620\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/ifintechworld.com\/?p=63620#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/ifintechworld.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Fed Leaves Interest Rates Unchanged, But More Hikes Still on the Table\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/ifintechworld.com\/#website\",\"url\":\"https:\/\/ifintechworld.com\/\",\"name\":\"Repay Down\",\"description\":\"Latest Personal Finance News, Tips and Updates\",\"publisher\":{\"@id\":\"https:\/\/ifintechworld.com\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/ifintechworld.com\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/ifintechworld.com\/#organization\",\"name\":\"Repay Down\",\"url\":\"https:\/\/ifintechworld.com\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png\",\"contentUrl\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png\",\"width\":558,\"height\":90,\"caption\":\"Repay Down\"},\"image\":{\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/\"}},{\"@type\":\"Person\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61\",\"name\":\"News Room\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png\",\"contentUrl\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png\",\"caption\":\"News Room\"},\"sameAs\":[\"https:\/\/ifintechworld.com\"],\"url\":\"https:\/\/ifintechworld.com\/?author=1\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Fed Leaves Interest Rates Unchanged, But More Hikes Still on the Table | iFintechWorld","description":"As expected, the Federal Reserve (Fed) left benchmark interest rates in the US unchanged at 5.25-5.5% on Wednesday.Bitcoin (BTC) fell just over 1% and was","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/ifintechworld.com\/?p=63620","og_locale":"en_US","og_type":"article","og_title":"Fed Leaves Interest Rates Unchanged, But More Hikes Still on the Table | iFintechWorld","og_description":"As expected, the Federal Reserve (Fed) left benchmark interest rates in the US unchanged at 5.25-5.5% on Wednesday.Bitcoin (BTC) fell just over 1% and was","og_url":"https:\/\/ifintechworld.com\/?p=63620","og_site_name":"iFintechWorld","article_published_time":"2023-09-20T20:41:54+00:00","article_modified_time":"2023-09-20T20:41:57+00:00","og_image":[{"width":1200,"height":800,"url":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/09\/adobestock-345880433___media_library_original_1200_800.jpeg","type":"image\/jpeg"}],"author":"News Room","twitter_card":"summary_large_image","twitter_misc":{"Written by":"News Room","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/ifintechworld.com\/?p=63620#article","isPartOf":{"@id":"https:\/\/ifintechworld.com\/?p=63620"},"author":{"name":"News Room","@id":"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61"},"headline":"Fed Leaves Interest Rates Unchanged, But More Hikes Still on the Table","datePublished":"2023-09-20T20:41:54+00:00","dateModified":"2023-09-20T20:41:57+00:00","mainEntityOfPage":{"@id":"https:\/\/ifintechworld.com\/?p=63620"},"wordCount":636,"commentCount":0,"publisher":{"@id":"https:\/\/ifintechworld.com\/#organization"},"keywords":["Featured"],"articleSection":["Crypto"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/ifintechworld.com\/?p=63620#respond"]}]},{"@type":"WebPage","@id":"https:\/\/ifintechworld.com\/?p=63620","url":"https:\/\/ifintechworld.com\/?p=63620","name":"Fed Leaves Interest Rates Unchanged, But More Hikes Still on the Table | iFintechWorld","isPartOf":{"@id":"https:\/\/ifintechworld.com\/#website"},"datePublished":"2023-09-20T20:41:54+00:00","dateModified":"2023-09-20T20:41:57+00:00","description":"As expected, the Federal Reserve (Fed) left benchmark interest rates in the US unchanged at 5.25-5.5% on Wednesday.Bitcoin (BTC) fell just over 1% and was","breadcrumb":{"@id":"https:\/\/ifintechworld.com\/?p=63620#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/ifintechworld.com\/?p=63620"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/ifintechworld.com\/?p=63620#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/ifintechworld.com\/"},{"@type":"ListItem","position":2,"name":"Fed Leaves Interest Rates Unchanged, But More Hikes Still on the Table"}]},{"@type":"WebSite","@id":"https:\/\/ifintechworld.com\/#website","url":"https:\/\/ifintechworld.com\/","name":"Repay Down","description":"Latest Personal Finance News, Tips and Updates","publisher":{"@id":"https:\/\/ifintechworld.com\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/ifintechworld.com\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/ifintechworld.com\/#organization","name":"Repay Down","url":"https:\/\/ifintechworld.com\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/","url":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png","contentUrl":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png","width":558,"height":90,"caption":"Repay Down"},"image":{"@id":"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/"}},{"@type":"Person","@id":"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61","name":"News Room","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/ifintechworld.com\/#\/schema\/person\/image\/","url":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png","contentUrl":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png","caption":"News Room"},"sameAs":["https:\/\/ifintechworld.com"],"url":"https:\/\/ifintechworld.com\/?author=1"}]}},"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts\/63620","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=63620"}],"version-history":[{"count":1,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts\/63620\/revisions"}],"predecessor-version":[{"id":63622,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts\/63620\/revisions\/63622"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/media\/63621"}],"wp:attachment":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=63620"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=63620"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=63620"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}