Here's a thread on how FED rate hike impact markets. The fourth supersized interest rate hike in a row signaled a continuation of the inflation whale trap. Fed's unclear policy statement depicting slowing down the rate increases didn't help either FOMC FOMO BTC ETH Crypto
Fed's confusing statement briefly depicting the slowing down of the rate increases didn't help either. Instead pushed stocks higher as investors got gauged leniency in Fed’s strong push to bolster the US economy. FOMC FOMO BTC ETH Crypto
So what do the Fed’s Rate Increases means for us: 1- Big toll on borrowers.
By raising key interest rates, which banks charge one another for overnight loans, FED sets off a scurry of monetary effects. Directly or indirectly, number of borrowing costs for consumers shoot up
2- Loans for Consumers.
Credit card rate change. Consumers pay more on revolving debt. Car loan rates rise too. Student loan borrowers pay more. FOMC FOMO BTC ETH Crypto
3- Mortgages Climb.
Mortgage rates track the yield on the 10-year Treasury bond, which is a key indicator of inflation and how investors think FED
may react to rising prices. Rates on 30-year fixed-rate mortgages have climbed incessantly.
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4- Higher Bank Interest Rates.
An increment in the Fed's rate means banks pay higher interest on deposits. Online banks are not left behind and have already started raising rates. FOMC FOMO BTC ETH Crypto
Final Conclusion: FED has already hiked rates 6 times to date. There may be a chance that a 50 basis point hike may incur in December, signaling a slowdown of tightening. Though Chair Powell did not state this 8 hrs ago Crypto pundits predicting this on the heels of a recessionThis post is based on this twitter thread.