{"id":9174,"date":"2022-12-14T20:57:16","date_gmt":"2022-12-14T20:57:16","guid":{"rendered":"http:\/\/cryptoheretostay.com\/?p=9174"},"modified":"2022-12-14T20:57:16","modified_gmt":"2022-12-14T20:57:16","slug":"fed-hikes-rates-by-only-50-basis-points-but-remains-hawkish","status":"publish","type":"post","link":"https:\/\/cryptoheretostay.com\/?p=9174","title":{"rendered":"Fed Hikes Rates by Only 50 Basis Points, but Remains Hawkish"},"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 U.S. central bank announced today that it was increasing the federal interest rates by 50 basis points.<br \/>\nThe decision brings rates to a range between 4.25% and 4.50%.<br \/>\nThe Fed\u2019s decision was welcomed by market participants, as it signifies a willingness to soften its hawkish stance towards monetary policy.<\/p>\n<p>Share this article<\/p>\n<p>The Fed will only be raising interest rates by 50 basis points, instead of 75 basis points like in previous months.\u00a0<\/p>\n<h2>Fed Softens Its Approach to Monetary Policy<\/h2>\n<p>The Federal Reserve announced today that it was raising interest rates by 50 basis points.\u00a0<\/p>\n<p>Speaking at the Federal Open Market Committee (FOMC), the U.S. central bank declared its decision to hike the federal funds rates by half a percentage point, bringing it up to 4.25% to 4.50%. The decision to only raise rates by 50 bps (instead of 75 bps, as was customary over the last few months) is notable, as it could potentially signal a softening in the Fed\u2019s monetary policy. However, Fed Chair Jerome Powell indicated that he expected to keep raising rates at a slower pace over a longer period of time, meaning that financial markets will likely experience more pain in the months ahead<\/p>\n<p>Interest rates are one of the tools the Fed can use to combat inflation. By raising rates, the central bank makes borrowing more expensive, which in turn pushes investors to sell their riskier assets for a strengthening U.S. dollar. After being criticized for not taking inflation fears seriously\u2014Powell infamously stated in March 2021 that inflation would be \u201ctransitory\u201d\u2014the central bank moved aggressively over the course of 2022, first raising rates by 25 bps in March, then 50 bps, and finally 75 bps on multiple occasions.<\/p>\n<p>However, the Fed\u2019s newfound zeal in tackling inflation has caused a new concern: that its hawkish monetary policy could push the U.S. and its allies into a recession\u2014possibly a long one. The United Nations recently issued a warning to that effect, claiming that the global economy could suffer from the Fed\u2019s \u201cimprudent gamble.\u201d This has led investors in traditional finance and crypto alike to believe the Fed could quickly reverse course on its monetary policy, and start cutting rates again, a hypothesis commonly known as the \u201cFed pivot.\u201d<\/p>\n<p>While the Fed\u2019s decision today could be a step in that direction, it doesn\u2019t seem like the central bank will begin cutting rates any time soon. Powell reaffirmed today his commitment to bring inflation down to 2%, and while yesterday\u2019s CPI print showed a decrease in the year-to-year inflation rate, it was still 5.1% above Powell\u2019s avowed objective. \u201cOur judgement today is that we are not at a sufficiently restrictive policy stance yet,\u201d he stated, insisting that rates could remain high over a long period of time even after the central bank stops raising them.<\/p>\n<p><i>Disclaimer: At the time of writing, the author of this piece owned BTC, ETH, and several other crypto assets.<\/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-pivot-powell-hikes-rates-by-only-50-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 U.S. central bank announced today that it was increasing the federal interest rates by 50 basis points. The decision brings rates to a range between 4.25% and 4.50%. The Fed\u2019s decision was welcomed by market participants, as it signifies a willingness to soften its hawkish stance towards monetary policy. Share this article [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":9175,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_wp_rev_ctl_limit":""},"categories":[4],"tags":[],"class_list":["post-9174","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\/9174","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=9174"}],"version-history":[{"count":1,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/9174\/revisions"}],"predecessor-version":[{"id":9176,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/9174\/revisions\/9176"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/media\/9175"}],"wp:attachment":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=9174"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=9174"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=9174"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}