On June 14, the US Federal Reserve System (FRS) for the first time since March 2022 kept the range of the key rate at the level of 5–5.25% per annum.
The decision coincided with market expectations. According to the Fed, US inflation remains high, unemployment remains low, and economic activity continues to grow at a modest pace. In the long term, the department aims to achieve 2% inflation.
“The US banking system is strong and resilient. Tighter lending conditions for households and businesses are likely to affect economic activity, hiring and inflation. The extent of these impacts remains uncertain. The Committee remains very attentive to inflationary risks,” the press release says.
On June 13, the US Federal Bureau of Labor Statistics published a report on consumer prices. The value of the index turned out to be lower than analysts’ forecast – growth in annual terms in May slowed down from 4.9% to 4%.
The cryptocurrency market almost did not react to the news. According to CoinGecko, the quotes of the largest digital assets by capitalization did not show significant dynamics.
Bitcoin first fell to $25,750 and then returned to $26,000. At the time of writing, the total capitalization of the cryptocurrency market remained at $1.1 trillion.
Preservation of the rate was preceded by a series of increase of the index 10 times in a row. Since March 2022, the key rate range has increased by 500 basis points.
Recall that in February 2023, the figure reached 4.5-4.75% per annum. Quotes of the first cryptocurrency reacted with growth above $23,000.
In March, bitcoin held above $28,000 amid the decision of the Fed to raise the rate to 4.75-5% per annum. At the end of the month, Bitcoin tested levels above $29,000.
In May, the agency increased the key rate range to 5-5.25% per annum. Bitcoin then held above $28,500.
Found a mistake in the text? Select it and press CTRL+ENTER
ForkLog Newsletters: Keep your finger on the pulse of the bitcoin industry!