Fed raised rates

As expected, the Federal Reserve announced a formal rate hike, the first since 2018, raising rates by 0.25% and in line with expectations on Wall Street. The rate hike was approved by a vote of 8-1 with the one dissenting vote calling for a 0.5% rate hike. US saw 7.9% inflation in February, the highest since January 1982. The inflationary environment has worsened by the war in Ukraine that has led to a spike in commodities prices, and general supply chain issues that have been a side-effect of COVID. In general, the Fed commented on a planned 6 rate hikes over the course of the next few quarters. The Fed expects inflation to cool to 4.3% by the end of the year, but well above the target rate of 2.3%.

There was no immediate impact on the crypto market with Bitcoin and Ethereum holding steady.

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