Jerome Powell, the chairman of the Federal Reserve just announced in a speech that it will raise interest rates in America again by 75 basis points (0.75%). Most analysts already expected such an increase, but despite that, it is and remains a huge interest rate step.
Another huge interest rate hike to curb inflation
The policymakers of the US umbrella organization of central banks say that tough action is needed to get inflation under control. Last month and the month before, the Federal Reserve also raised interest rates by 0.75%. The Fed has not raised interest rates so quickly since the 1980s. It is also possible that the Fed will raise interest rates again next month, says Jerome Powell. The Fed wants to do everything it can to reduce inflation.
Bitcoin price reacts positively
The Bitcoin price appears to be responding positively to the 0.75 percent increase. In an earlier article, Newsbit wrote that the 0.75 percent increase would provide some relief for Bitcoin investors. There were rumors that the Federal Reserve might raise interest rates by 1 percent today. However, it remains to be seen whether this price increase will last for long. There is little hope from Jerome Powell’s speech that inflation will ease in the near term.