FOMC Interest Rate Decision Signals All Clear For Bitcoin Bull Run
The Bitcoin (BTC) bull run has clear skies above following the Federal Open Markets Committee (FOMC) interest rate decision on Wednesday.
The Federal Reserve opted to keep its target interest rate flat in the range of 5.25% to 5.50%, despite February’s inflation figures clocking in slightly higher than expected last week at 3.2%.
In its Wednesday press release, the central bank noted that the nation’s economic activity continues to expand. Meanwhile, unemployment remains low, and inflation stubbornly elevated.
“The Committee judges that the risks to achieving its employment and inflation goals are moving into better balance,” it added. “The economic outlook is uncertain, and the Committee remains highly attentive to inflation risks.”
The Federal Reserve is committed to its CPI inflation target of 2% – a low not seen since February 2021. Some economists including Paul Krugman have suggested that the Fed adjust its target inflation rate to 3% and declare its war on rising prices victorious.
Fed raises long-term interest rate projection to 2.6% from 2.5%, expects rates > 3% thru 2026
GDP projection up to 2.1% from 1.4%
Unemployment slightly down to 4% from 4.1%
PCE Inflation unchanged at 2.4% pic.twitter.com/toj7FhjdPu
— Eric Wallerstein (@ericwallerstein) March 20, 2024
While the Fed has signaled that further rate hikes aren’t off the table, it did not mention raising rates in Wednesday’s statement either.
Cutting rates also appears to be a distant prospect.
“The Committee does not expect it will be appropriate to reduce the target range until it has gained greater confidence that inflation is moving sustainably toward 2 percent,” the statement read.
Additionally, the Fed will continue to sell treasuries and mortgage-backed securities
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