The US Federal Reserve, as expected, on Wednesday kept its benchmark federal funds rate range steady at 5.25%-5.50%. But at the same time, he reduced his interest rate forecast for the end of 2024 to 4.6% from 5.1%.
Tightening financial and credit conditions for households and businesses are likely to impact economic activity, employment and inflation. The extent of these effects remains uncertain.
Accompanying statement of the Federal Reserve Bank.
Along with the interest rate announcement, the Fed also released its quarterly economic outlook update. The central bank now expects 2023 to end with a core inflation rate of 3.2%, versus 3.7% expected three months ago.
The final rate for 2024 is now expected to be 2.4% versus 2.6% previously. Real GDP growth for 2024 was reduced to 1.4% from 1.5%.
The Fed now sees the federal funds rate ending 2024 at just 4.6% versus 5.1% expected three months ago. Which indicates a 75 basis point cut in interest rates next year.
Cryptocurrency prices now
Bitcoin’s dollar price is now rising 3.6% to $42,762. Likewise, the price of Ethereum (ETH) rose by 3.28% to $2,254.8 per coin.
The rise included the Solana coin, which jumped 6.14% to $71.65, and the Cardano coin, which rose 11.67% to $0.634362 per coin currently.
