The Federal Reserve raised interest rates by 25 basis points, setting the federal funds rate in a range of 3.75% to 4%. The decision was unanimous, with a 12 to 0 vote by the Federal Open Market Committee, aimed at steering inflation toward the 2% target.
Market expectations for the hike were high, with the CME FedWatch Tool indicating an 88% probability of the increase. Prior to the announcement, Bitcoin traded near $75,500, while Ethereum, Solana, and XRP saw declines earlier in the week.
Following the announcement, Bitcoin rose above $76,000, and other major crypto assets gained more than 1%. Traditional markets also showed volatility, with 10-year Treasury yields reaching 5% on Tuesday before easing to 4.95% on Wednesday.
The Federal Reserve noted that economic activity remains solid, citing resilient domestic spending and robust capital investment. Policymakers are now evaluating how long rates should remain elevated and whether further adjustments are necessary.
