Fed Raises Rates by 75 Basis Points

cryptonews.com:

On Wednesday, the US Federal Reserve (Fed) raised rates by 75 basis points,in line with most analysts’ forecasts. (This is a developing story and is being constantly updated.)

“[…] the Committee decided to raise the target range for the federal funds rate to 1‑1/2 to 1-3/4 percent and anticipates that ongoing increases in the target range will be appropriate,” the statement from the Fed said.

The rate hike is higher than the 50-basis point hike Fed officials have previously indicated they would go for, but in line with what most market participants estimated after a higher-than-expected inflation report was released last week.

Powell has in a previous interview with the Wall Street Journal said that if the central bank does not see “clear and convincing evidence that inflation pressures are abating,” it will “consider moving more aggressively.”

At its last meeting in May, the Fed raised rates by 50-basis points. The increase then marked the first such increase since 2000. 75-basis point hikes are even rarer, and have not happened since November 1994 when then-Fed chair Alan Greenspan was seeking to combat rising inflation.

Federal Funds rate ahead of Wednesday’s hike:

Commenting ahead of today’s Fed announcement, crypto broker GlobalBlock analyst Marcus Sotiriou said that an aggressive Fed – contrary to conventional wisdom – could be the best outcome for markets today.

“I think a very aggressive Federal Reserve might be the best way forward for markets, so that the Federal Reserve will be able to resume [quantitative easing] sooner,” Sotiriou said in an emailed comment.

He added that quantitative easing (QE) by the Fed is what has fueled the rise in both crypto and other risk assets in recent years, and that a tightening from