Bitcoin Up as Fed Announces 0.75 Point Rate Hike

The Federal Reserve has hiked interest rates by another 75 basis points.

The U.S. central bank announced the development at Wednesday’s Federal Open Market Committee. After the 0.75% increase, U.S. interest rates are now between 2.25% and 2.5%, the highest levels seen since the beginning of the COVID-19 pandemic.

The Fed’s decision came after the U.S. Bureau of Labor Statistics revealed that the Consumer Price Index had risen to a 40-year high of 9.1% in June despite the central bank’s months-long efforts to curb soaring prices with interest rate hikes. The bureau’s report said that gasoline, shelter, and food price rises were the biggest contributor to the rise.

The latest move from the Fed comes as growing numbers of Americans express fears over soaring prices. According to a recent CNBC poll, 96% of citizens are “concerned” about the food, gas, and shelter price rises.

To fight inflation, the Fed can attempt to contract the money supply. It does so by raising interest rates, which makes borrowing money more costly. The 75 basis point hike was widely expected, though it was speculated that the central bank could opt for a 100 basis points hike shortly after the inflation data for June dropped.

Source: https://cryptobriefing.com/fed-hikes-interest-rates-by-another-75-basis-points/