Powell "not actively considering 3 rate hikes", Yellen guarantees "soft landing" for inflation, US stocks and cryptocurrencies surge on the news
The Federal Reserve (Fed) raised interest rates by 0.25% as expected on the 4th, while outlining its balance sheet reduction plan. Fed Chairman Powell took a cautious stance on more aggressive rate hikes after the meeting. Upon hearing the news, the four major U.S. stock indices surged in the closing bell, all closing in the green. The Dow soared over 900 points, the Nasdaq jumped 3.19%, and the S&P 500 also surged by 4%.
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Cryptocurrencies have risen along with the tide, with Bitcoin's price surging from $38,700 to $39,900 and Ethereum skyrocketing from $2,833 to $2,964.
On the same day, U.S. Treasury Secretary Yellen, in an interview with The Wall Street Journal, expressed her expectation that the economy will continue to grow this year, with inflation experiencing a "soft landing" rather than falling into a recession.
Concerns initially arose over the potential for the Ukraine-Russia conflict and a new wave of COVID-19 outbreaks in China to exert greater inflationary pressure globally. However, the Fed's rate hike was in line with market expectations, and Powell's post-meeting remarks indicated that future rate hikes would continue at a 2-digit pace, with no immediate plans to raise rates by 3 digits. News of this has injected renewed vigor into the U.S. stock market.
This article is authorized for republication from Horizon News Network
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