FOMC: How Will Bitcoin React to a 25 BPS Hike?
Inflation in the U.S. has started cooling down. The rate fell in December to 6.5% on an annual basis, according to the CPI. For context, inflation stood at 7.1% in November and 9.1% in June 2022. When the CPI numbers were released in mid-January, Mark Zandi, Chief Economist at Moody’s Analytics opined that people will not be talking about inflation this time next year. With the economy gradually getting back on track, the Federal Reserve is expected to slow its interest rate hike pace. The new rate is all set to be announced at 2 p.m. ET on Wednesday, Feb. 1. According to the CME, there is a 99.9% probability of raising Interest rate s by 25 basis points [4.5% to 4.75%]. Additionally, Interest rate futures show that the Fed ’s current rate hike cycle may end in June. Source: CME FedWatch Tool Also Read: US Inflation Rate Falls to 6.5% In a recent speech, Philadelphia Fed President Patrick Harker emphasized that hikes of 25 basis points “will be appropriate...