Fed keeps interest rates unchanged for 7th consecutive time

13 Jun 2024

The Fed continues to maintain interest rates at a high level of 5%, causing the Bitcoin and crypto markets to have an extremely volatile 12 trading hours.

After the meeting on June 12 (US time), the Federal Open Market Committee (FOMC) of the US Federal Reserve (Fed) announced the latest interest rate adjustment, thereby continuing to keep it unchanged. Interest rates range from 5.25 to 5% - the highest threshold since the 2008 financial crisis.

This was the 7th consecutive meeting that the Fed did not adjust interest rates. The reason is because Fed Chairman Jerome Powell still maintains the goal of bringing inflation in the world's largest economy to 2%.

With the latest developments, US financial observers have lowered their expectations for the Fed to reduce interest rates to just once in the remainder of 2024, with the target interest rate at the end of the year being 5-5. 25%.

Some also expressed concern that if the Fed continues to maintain the current high interest rate without taking other regulatory measures soon, the US economy could fall into stagnation.

As reported by Coin68 on the evening of June 12, the Consumer Price Index (CPI) - a measure of inflation - of the US in May 2024 was 3.3%, lower than observers' forecasts of 3.4%. This information caused Bitcoin to recover from 67,800 USD to 70,000 USD because this was a positive signal to make the Fed reconsider its stance of reducing interest rates.

However, when the news that interest rates would not be adjusted was released, the world's largest cryptocurrency quickly dropped to its old price range, currently trading in the area of ​​68,000 - 68,500 USD. BTC previously even dropped to its June low of $66,000 when selling pressure surged on June 11.

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