Federal Reserve Keeps Rates Close to Zero, Maintains Asset Purchases

The U.S. central bank said interest rates will remain close to zero.

This week the U.S. Federal Reserve met for two days at the Federal Open Market Committee meeting and detailed that it would keep short-term borrowing rates at near zero. Meanwhile, the Fed also stated that it would continue buying bonds until the U.S. economy returns to full employment. America’s central bank met this week for the last Federal Open Market Committee (FOMC) meeting of 2020. The Fed has a touch more optimism for the end of this year and into 2021 according to the summary of economic projections. However, the central bank will make no changes to the benchmark interest....

The United States Federal Reserve is tightening, and interest rates hike has heavily impacted on the crypto market. Earlier this month, Bloomberg Analyst McGlone said Bitcoin would outperform traditional stocks as interest rates hike. However, to this point, Bitcoin does not seem to follow Bloomberg’s predicted trend. As a matter of fact, despite Bloomberg’s bullish standpoint, Bitcoin and other cryptocurrencies are still in a crash. For example, BTC and ETH dropped by 2% after the Fed’s announcement and bounced back. But have now crashed again. BTC is currently trading below....

Members of the U.S. Federal Reserve discussed the possibility of economic measures and actions at the Federal Open Market Committee’s (FOMC) meeting on Wednesday. The Fed said that right now the central bank is not considering cutting back large asset purchases just yet, and the central bank also plans to keep interest rates at near-zero. Speaking about the dollar’s dwindling purchasing power, Federal Reserve chairman Jerome Powell said that “inflation could turn out to be higher and more persistent than we originally expected.” The Federal Reserve Will Continue....

After an early-morning slump as the crypto market waited in anticipation for the Fed meeting, Bitcoin (BTC) prices bounced more than 7% to $58,000 from an intraday low of $54,000. The broader crypto market welcomed Fed Chair Jerome Powell’s words as he reinstated that interest rates would remain at current levels until 2023. Alongside BTC, Ethereum (ETH) and other altcoins rallied to pare this past weekend’s losses.  Federal Reserve Maintains Near-Zero Interest Rates; What that […]