Bitcoin Spikes to $49,000 as Fed Leaves Interest Rates Unchanged

in bitcoin •  3 years ago 

Federal Reserve officials have decided to leave interest rates unchanged at a Wednesday meeting, keeping them between zero and 0.25%.

The Bitcoin price is up 3.4% on the news, reaching a new intraday high above the $49,000 on the Bitstamp exchange.

The Fed will mainnet near-zero rates until full employment is achieved.

The median forecast of the policymakers shows three rate hikes in 2022. Three additional hikes are expected to occur in 2023.

The central bank has also doubled the pace of bond purchase tapering to $30 billion per month.

Market observers were looking for signals of the Fed's determination to decisively withdraw its economic support amid persistent inflation concerns.

Notably, the Fed no longer uses the controversial word "transitory," which has been criticized by former Twitter CEO Jack Dorsey and other pundits, in order to describe inflation.

Last week, the US inflation rate reached its highest level since 1982.

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