{"id":5981,"date":"2022-07-28T06:42:57","date_gmt":"2022-07-28T06:42:57","guid":{"rendered":"https:\/\/www.cryptoheretostay.com\/?p=5981"},"modified":"2022-07-28T06:42:57","modified_gmt":"2022-07-28T06:42:57","slug":"bitcoin-up-as-fed-announces-0-75-point-rate-hike","status":"publish","type":"post","link":"https:\/\/cryptoheretostay.com\/?p=5981","title":{"rendered":"Bitcoin Up as Fed Announces 0.75 Point Rate Hike"},"content":{"rendered":"<p> <script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"crypto\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script><br \/>\n<\/p>\n<h3>Key Takeaways<\/h3>\n<p>The Federal Reserve has hiked interest rates by another 75 basis points.<br \/>\nThe rate hike comes after the Consumer Price Index revealed that inflation had hit a fresh 40-year high of 9.1% in June.<br \/>\nThe Fed\u2019s repeated rate hikes are prompting concerns that the country may be heading into a recession. <\/p>\n<p>Share this article<\/p>\n<p>U.S. interest rates have returned to pre-pandemic levels as the Federal Reserve attempts to tackle soaring inflation rates.\u00a0<\/p>\n<h2>Fed Fights Inflation With 0.75% Rate Hike<\/h2>\n<p>The Federal Reserve has hiked interest rates by another 75 basis points.\u00a0<\/p>\n<p>The U.S. central bank announced the development at Wednesday\u2019s 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.\u00a0<\/p>\n<p>The Fed\u2019s 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\u2019s months-long efforts to curb soaring prices with interest rate hikes. The bureau\u2019s report said that gasoline, shelter, and food price rises were the biggest contributor to the rise.\u00a0<\/p>\n<p>The latest move from the Fed comes as growing numbers of Americans express fears over soaring prices. According to a recent <em>CNBC<\/em> poll, 96% of citizens are \u201cconcerned\u201d about the food, gas, and shelter price rises.\u00a0<\/p>\n<p>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.<\/p>\n<p>\u201cInflation has obviously surprised to the upside over the past year and further surprises could be in store,\u201d said Federal Reserve Chair Jerome Powell at the press conference that following the FOMC meeting. While he stated that it would \u201cbecome appropriate to slow the pace of increases,\u201d he added that the central bank would consider \u201can even larger\u201d hike if needed in the future.<\/p>\n<h2>Recession Fears Loom<\/h2>\n<p>The Fed\u2019s efforts to curb inflation come as uncertainty prevails across global markets and fears of a possible recession escalate. The Bureau of Economic Analysis\u2019 GDP print showed the U.S. economy shrank by 1.6% in the first financial quarter, and many economists fear that the economy could post a decline in the second quarter. A recession has historically been identified by two consecutive quarterly declines in GDP.<\/p>\n<p>The GDP numbers for the second quarter of the year will be released tomorrow, and the White House has seemingly been preparing the public for the announcement in advance. Last week, it published a blog post on the matter, before sharing an interview transcript in which Treasury Secretary Janet Yellen argued that two consecutive quarters would not indicate that the country was in a recession because the Bureau of Economic Analysis looks at \u201ca broad range of data.\u201d President Biden said on Monday that the U.S. was \u201cnot going to be in a recession\u201d in response to a reporter\u2019s question about tomorrow\u2019s GDP print, and yesterday his economic advisor Brian Deese reiterated Yellen\u2019s argument in the White House\u2019s press office.<\/p>\n<p>The crypto market has reacted positively to today\u2019s hike, with both Bitcoin and Ethereum jumping following the Fed\u2019s announcement. Bitcoin crossed $22,000, and is up 5% in the past 24 hours. Ethereum hit around $1,550, jumping 11.6% on the day. After the latest rally, the global cryptocurrency market capitalization has once again topped $1 trillion.<\/p>\n<p><i>Disclosure: At the time of writing, the author of this piece owned ETH and several other cryptocurrencies.\u00a0<\/i><\/p>\n<p>Share this article<\/p>\n<p>The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.<\/p>\n<p>You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.<\/p>\n<p>See full terms and conditions.<\/p>\n<p><script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"bitcoin\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script><br \/>\n<br \/><a href=\"https:\/\/cryptobriefing.com\/fed-hikes-interest-rates-by-another-75-basis-points\/?utm_source=category_feed&#038;utm_medium=rss\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways The Federal Reserve has hiked interest rates by another 75 basis points. The rate hike comes after the Consumer Price Index revealed that inflation had hit a fresh 40-year high of 9.1% in June. The Fed\u2019s repeated rate hikes are prompting concerns that the country may be heading into a recession. Share this [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":5982,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_wp_rev_ctl_limit":""},"categories":[4],"tags":[],"class_list":["post-5981","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-market-news"],"_links":{"self":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/5981","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=5981"}],"version-history":[{"count":1,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/5981\/revisions"}],"predecessor-version":[{"id":5983,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/5981\/revisions\/5983"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/media\/5982"}],"wp:attachment":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=5981"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=5981"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=5981"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}