Interest Rate: Great or Hate
This coming FOMC meeting on June 15 is crucial and here’s why:
The Federal Open Market Committee (FOMC) sets the federal funds rate
A change in interest rate impacts both the economy and the stock markets because borrowing becomes either more or less expensive for individuals and businesses
Higher interest rates tend to negatively affect earnings and stock prices with the exception of the financial sector
Importance: The stock market is correlated to the crypto market
Here’s a guide to simplify things:
Rates , Stock market
Rates , Stock market
Note: There is no guarantee as to how the market will react to any given interest rate change
Expectations: The FED is expected to raise interest rates by 0.75% this coming FOMC meeting
Possibility: It’s also possible that the increase in rates are already priced in given that there is a high probability of the FED increasing the rates due to the recent inflation data
