The Federal Reserve raised the federal funds target range to 3.75%-4.00% on September 16, 2026. This move represents the first interest rate hike implemented by the central bank since 2023, signaling a shift toward a tighter monetary policy.
Market expectations for the upcoming October 2026 meeting have shifted following the recent decision. The probability of a 25 basis point rate increase is now estimated at 47.5%, rising from 38% recorded just 24 hours prior.
Analysts note that the new Fed Chair intends to maintain the independence of the central bank despite external pressures. This stance suggests a willingness to pursue further rate hikes if required to ensure economic stability and manage inflation.
Despite the changes in monetary policy, Bitcoin prices have not shown a significant reaction to the Fed's recent actions. Market participants continue to monitor upcoming employment and inflation data as key indicators for future FOMC decisions.
