About the rate hike In fact, starting from May 2022, the 7 | Global CRYPTO News
About the rate hike
In fact, starting from May 2022, the 75 bp increase was already priced in by the market, which is why there were three possible scenarios:
- A 75bp increase would lead to a flat with a slow and tedious upward pull-up;
- an increase by 100 bp (higher than expected) would have led to a dump;
- A 50 bp increase would have caused a local bump, at the very least, and at the very most, the bottom has been reached.
- (There is also the "option from Ilon"), - Musk suggested instead of another rate hike just to lower the rate by 25 bps. It is clear that this will not happen, but I wanted to dream)).
No kidding, everything really depends on the Fed's decisions which they will come to - it will set a vector for almost the whole end of 2022.
And the result of the meeting (September 21, 2022) is as follows: "The U.S. Federal Reserve (Fed) raised its key rate again by 0.75% - to 3.25%. This is the highest rate since 2008. By the end of the year, the key rate could rise to 4.4%. According to the Fed, imbalances caused by the pandemic and higher food and energy prices are the main drivers of rising inflation. "
Also, Fed officials have said they intend to keep raising until the funds level reaches the "cap rate," or the 4.6% endpoint in 2023. This implies a quarter-point increase in the rate next year, but not a decrease.
