The Federal Open Market Committee (FOMC) of the U.S. Federal Reserve resumed rate hikes Wednesday, raising its benchmark fed funds rate by 25 basis points to a targeted range of 5.25%-5.50%. The price of bitcoin (BTC) was little-changed at $29,300 in the immediate aftermath of the announcement.
The hike was fully anticipated by markets, with the CME FedWatch tool showing a near-100% chance of such an action. The accompanying policy statement noted that “tighter credit conditions for households and businesses are likely to weigh on economic activity, hiring, and inflation.”
Market participants will be closely following Fed Chair Jerome Powell’s post-meeting press conference for clues about the central bank’s plans for its next meeting in September and beyond. A recent Reuters survey of 106 economists showed that most expect today’s hike to be the last one this cycle, however the Fed’s own projections suggest otherwise.
The price of BTC has stalled during July, trading as high as $31,800 earlier this month before dipping to a one-month low below $29,000 on Monday.