Bitcoin (BTC) has remained steady at around $28,600 on the Bitstamp exchange following the announcement that the US Federal Reserve would be raising interest rates by 25 basis points.
The move was mostly in line with Wall Street's expectations, which explains why there has been very little volatility.
The unanimous vote for the 25 basis point increase indicates that further tightening is possible, with projections implying one more 25 basis point rate hike this year.
This would result in a 2023 terminal rate forecast of 5.1%, unchanged from December projections, and 75 basis points of rate cuts next year.
The Fed's statement on the hike notes that further tightening could be necessary, but most Fed governors and reserve bank presidents still believe they are just one hike away from the terminal rate.
On the balance sheet side of things, the Fed is continuing to let $95 billion of assets ($60 billion of Treasuries, $35 billion of MBS) roll off each month.
Yuri MolchanIn its press release, the Federal Reserve highlighted that recent indicators point to modest growth in spending and production, with job gains running at a robust pace and low unemployment rates.
Inflation remains elevated, and the Committee remains highly attentive to inflation risks.
As reported by U.Today, Nomura predicted that the central bank would be forced to cut rates due to the ongoing banking crisis, but this U-turn didn't happen.
Notably, the central bank reiterated that the US banking system is sound and resilient.
Godfrey Benjamin
Tomiwabold Olajide
Dan Burgin
Vladislav Sopov