- The overall concern keeps the bitcoin price below $20,000.
- Wall Street expects a 75 basis point rate hike from the Federal Reserve this month.
United State Federal Reserve It is expected to raise interest rates by 75 basis points during the FOMC meeting (September 21). As the Federal Reserve works to rein in inflation, many financial institutions, including Goldman Sachs, Wells Fargo, JPMorgan and Morgan Stanley, expect a rate hike of 75 basis points this month. Meanwhile, the overall concern is keeping the bitcoin price below $20,000.
Wall Street expects a 75 basis point rate hike from the Fed in September, rather than the 100 basis point increase that some fear could lead to a recession. As a result of this rate increase, the federal funds rate is now at its highest level since 2008. The Fed’s benchmark borrowing rate will increase from 3.0% to 3.25% from the current range of 2.25% to 2.50%.
The Federal Reserve is expected to raise interest rates by 25 basis points in September, as previously expected Goldman Sachs. Then, in November and December, there will be a 50 basis point increase in price. Investment banks JPMorgan and Morgan Stanley agree that a 100 basis point rate hike would be harmful to the economy.
Meanwhile, Michael Schumacher, managing director at Wells Fargo, argued that the Fed should implement a steady 150 basis point cut rather than risk panicking on Wall Street. David Rubinstein, billionaire and co-founder of The Carlyle Group, believes that the proposed 100 basis point increase in interest rates will have a negative impact on the economy and the stock market. The cryptocurrency market is trading in the red as well as bitcoin and any other negative news will definitely lead to more slippage.
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Major cryptocurrencies continue to decline ahead of the US Federal Reserve meeting
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