The US Federal Reserve (FED) has just announced that it will raise interest rates by 75 basis points. The gains are in line with market consensus, which some analysts say has been priced into traditional markets.

Fed raises interest rates by 75 basis points

In a press release, the Fed said:

“The Commission seeks to achieve maximum employment and inflation at 2% over the longer term. To support these goals, the Commission decided to increase the target range for the federal funds rate from 2-1/4 to 2-1/2 percent and anticipate that continued increases in the target range target will be appropriate”.

“In addition, the Commission will continue to reduce its holdings of Treasury securities and debt and mortgage-backed securities, as described in the Federal Reserve's Balance Sheet Downsizing Plan. Federal was issued in May”.

The market was anticipating that 75 basis points would be the Fed's next move. However, commentators are weighing the impact of the central bank's balancing act against curbing inflation and avoiding future recessions.

David Rosenberg, founder and president of Rosenberg Research & Associates, said the day before:

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“Let's wait and see if the Fed abandons its guidance and interest rate commitments and accepts data dependence. This bull cycle ends at 2pm tomorrow. Let's buy bonds."

Meanwhile, looking further ahead, Wall Street macro strategist David Hunter forecasts risk assets will continue to get relief. Preferably recent lows will not repeat, a potential boon for bulls due to the continuous correlation of with the stock market.

“No matter what the Fed decides today, the market is ready for a move higher with S&P 4150–4200 and then possibly a short pullback, sliding towards 3800 before a stronger rally, more sustainable to 6000”.

The market reacts

Market responded positively, with increased by more than 9% shortly after the data was published. Price rose 3% earlier on Wednesday – the day before the FOMC statement after falling 13% since the local peak on July 20.

Source: TradingView

Price Bitcoin rose prior to the last two FOMC meetings, and was followed by a 15-20% drop over the next 3 days. However, previous increases in January and March have seenBitcoin initially decreased before increasing about 7% in the following days. The chart below shows Bitcoin price movement after the last four FOMC meetings.

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The source: TradingView

rallied more than 13% on Wednesday ahead of the Fed's announcement. Its price increased by 5% after the release of the FOMC statement that reacted more positively than Bitcoin. has now increased by 13% on the day after the FOMC statement was released.

Source: TradingView

In addition to the two largest cryptocurrencies, the Others are also seeing big gains, with two led by LDO are earning 40% and BTG up 31% in the last 24 hours period.

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