Call 800 665 0411 to learn about our services for your stock

Search   Follow Investorideas on Twitter   Investorideas is on Facebook   Investorideas is on Youtube   Investorideas is on Pinterest  Investorideas is on stocktwits   Investorideas is on tumblr   Investorideas is on LinkedIn   Investorideas Instagram   Investorideas Telegram   Investorideas Gettr   Investorideas RSS

Share on StockTwits

Federal Reserve Hits Pause Button, Inflation 'Eases Substantially' to Still Being 'Too High'


June 14, 2024 ( Newswire) Trading. Biz. - Federal Reserve Chairman Jerome Powell has disclosed publicly that there wouldn't be any change to the current 5.25% to 5.50% interest rate. This has come as a shocker to many because the usual expectation from a central bank is to provide a rate cut to spur growth. However, Powell is more careful, stating that inflation is still elevated and has to be lowered back to 2%.

The economy is showing some signs of improvement with regard to the inflation rate, which has slightly decreased recently. Thus, the Fed is expecting to see improvements that are more consistent before it makes some reactions.

These considerations explain the wording of The Federal Reserve's statement in which it stated that "the Committee is prepared to adjust policy as needed to achieve the inflation target"

Here are the latest key indicators:

  • The U.S. Consumer Price Index (CPI) showed no change in May, beating expectations and indicating a possible slowdown in inflation.
  • The core CPI, which excludes volatile food and energy prices, increased by 0.2% in May, better than the expected 0.3% rise and consistent with the previous month's 0.3%.
  • On an annual basis, the CPI rose by 3.3%, slightly below both the previous month's 3.4% and analysts' forecasts.

This news has been met well by the cryptocurrency market, with Bitcoin's price rising to about $69,400, which is a 3.7% uptick in the past 24 hours. Taken together, traders believe that the next phase in the cryptocurrency rally will result from more relaxed monetary policies among traders.

"The fact that the Federal Reserve left interest rates as they are suggests that they are not rushing things and are inclined to wait and see how the economy pans out," says Tobi Amure, a tech analyst at Trading. Biz. "This conservative approach is beneficial for the crypto market because the Fed is ready to wait and let the economy grow before making more decisions. We might enjoy the continuous uptrend with BTC and other altcoins as the traders gain confidence in the market."

The Federal Reserve's decision to maintain rates shows a defensive monetary policy. The monetary authority continues to observe new data in its effort to ensure that inflation is back to the target and in a sustainable manner. As the crypto market continues to react to this news, one thing is clear: decisions made by the Fed will attract the attention of traders as well as investors in the financial market.

More Info:

Disclaimer/Disclosure: is a digital publisher of third party sourced news, articles and equity research as well as creates original content, including video, interviews and articles. Original content created by investorideas is protected by copyright laws other than syndication rights. Our site does not make recommendations for purchases or sale of stocks, services or products. Nothing on our sites should be construed as an offer or solicitation to buy or sell products or securities. All investing involves risk and possible losses. This site is currently compensated for news publication and distribution, social media and marketing, content creation and more. Disclosure is posted for each compensated news release, content published /created if required but otherwise the news was not compensated for and was published for the sole interest of our readers and followers. Contact management and IR of each company directly regarding specific questions.

More disclaimer info: Learn more about publishing your news release and our other news services on the newswire

Global investors must adhere to regulations of each country. Please read privacy policy: