Interest rates been increased by the U.S. Federal Reserve to their highest level in more than 22 years. In accordance with market predictions, it increased them by a quarter of a percentage point to be between 5.25% and 5.5%.
In spite of the most recent rate increase, Bitcoin, the largest cryptocurrency by market capitalization, has remained impressively stable.
At the time of publication, Bitcoin was trading at $29,256 on the Bitstamp platform, up just 0.25% from the previous day. This suggests that the cryptocurrency market may be ignoring conventional financial news.
Following the Fed’s decision, which was made public on Tuesday, the benchmark federal funds rate will increase to a level not seen since 2001.
The Federal Open Market Committee (FOMC) said that this decision was unanimous, indicating a startling unanimity among Fed officials who had openly clashed with one another throughout this year in between meetings.
Along with a modest rate of economic development, the FOMC noted significant job gains and low unemployment rates as some of the reasons influencing its decision.
They stated that the decisions they make in the future would be influenced by tightening impact as well as monetary and economic trends.
Interest rate swaps continue to assume a 50% risk of a new rise, suggesting the likelihood of future hikes.
