After several consecutive interest rate cuts, a streak that began in September, the United States Federal Reserve has pivoted on its strategy and has kept the rates steady between 3.5% and 3.75%.
This decision, which was largely expected despite the decreasing inflation in the US, has failed to impact BTC’s price, at least for now.
The statement from the central bank reads that the “unemployment rate has shown some signs of stabilization,” but warned that “inflation remains somewhat elevated.”
This claim is rather controversial, given the fact that the CPI data in the country for December and November were lower than expected. At the time, the POTUS used every opportunity to urge the Fed Chair Jerome Powell to continue cutting the rates.
Nevertheless, the Fed said it remains committed to reaching a healthier 2% inflation over the longer run, a level not seen in years.
“Uncertainty about the economic outlook remains elevated. The Committee is attentive to the risks to both sides of its dual mandate,” continues the statement.
Bitcoin’s price experienced more significant volatility earlier today, before the decision was made public. It surged past $90,000 on a couple of occasions, only to be rejected and driven south to $88,750 at one point. Nevertheless, it has remained stable above $89,000 after the Fed’s pivot on the rate cuts was announced.
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