• The Federal Reserve of the United States (Fed) raised interest rates by 25bp.
• Jerome Powell hinted at the end of the tightening cycle, however market is expecting rate cuts before the end of the year.
• Crypto markets were unaffected by Fed’s decision and remain in a tight range.
Fed Raises Interest Rates
The Federal Reserve of the United States (Fed) raised their interest rates by another 25bp, in attempt to tighten financial conditions. Chair Powell was careful to hint at the end of this tightening cycle, yet markets are not convinced that it will be enough and have been pricing in several rate cuts before the end of this trading year.
US Dollar Unaffected
Despite these developments, there has been no reaction from markets as they remained within a tight range. This was also seen with regards to US Dollar exchange rate as it did not move following this announcement.
Crypto Markets Remain Stable
The cryptocurrency market was similarly unaffected by this announcement, with Bitcoin remaining in its current levels since April. This lack of activity could be attributed to Chair Powell’s press conference which provided clarity about Fed’s intentions hence neither bulls nor bears had any surprises or new information to react upon.
Focus Shifts To Jobs Report
Now attention shifts to Friday’s jobs report which is expected to provide more insight on how monetary policy should continue for rest of 2019 and beyond.