The Fed did not raise interest rates, but they still hurt the | CRYPTO TREYSI

The Fed did not raise interest rates, but they still hurt the crypto market
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On June 14, the Fed finally stopped raising the interest rate - it remained at 5-5.25%. Market participants had been waiting for this event for a long time (more than 94% of investors were confident that the rate will remain at the same level), so the decision has already been embedded in the market.

But the most interesting lurks in the statements of Jerome Powell, namely his ideas and suggestions help to understand the general vector of the American economy development.

There was a lot of optimism before his speech, as U.S. annual inflation slowed to 4%, a two-year low. This is heartening, but Jerome Powell himself offset this good news (rate and CPI) with harsh statements at the press conference:

• Inflation hasn't come down enough. We need to get it back to 2% (now 4%, the best result in 2 years);
• The pause in the rate hike is temporary - the rate may be raised twice more this year alone;
• They are not even thinking of lowering the rate this year. Maybe in 2024, but not before.

The good news is this: Powell admitted that the peak on interest rates is close.

If the Fed's plan had been to lower rates before the end of the year, the markets might have cheered us up. But reality is handing the crypto market a new slap in the face, in addition to lawsuits from an embittered SEC, and bitcoin is falling below $25,000.

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