Federal Reserve officials have announced the fourth consecutive 75-basis point hike in order to tame persistent inflation
U.S. Federal Reserve officials raised the benchmark interest rate by 75 basis points for the fourth consecutive time, causing renewed volatility.
The price of Bitcoin (BTC) plunged to an intraday low of $20,210 on the Bitstamp exchange at 18:00 UTC before recovering. Cardano (ADA), XRP, Shiba Inu (SHIB), and other altcoins are performing in lockstep with the flagship cryptocurrency.
The S&P 500 and other benchmark stock market indices are also experiencing high volatility.
With its most recent decision, the Federal Open Market Committee has now taken the federal funds rate to the 3.75% to 4% range. It is worth noting that it was in a range of zero to 0.25% back in March.
Investors believe that the Fed will likely hike the benchmark rate by 50 basis points in December, but strong employment numbers suggest that the central bank might go for its fifth consecutive 75-basis point hike in a row.