Federal Reserve hikes rates by 0.75%, largest in nearly 30-years
Following its latest policy meeting on Wednesday, the Federal Reserve opted to hike interest rates yet again, in order to battle rising inflation.
Earlier this afternoon, the Federal Open Market Committee confirmed that it was hiking its rate by 75 basis points. This represents the largest Fed move since 1994.
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Speaking today following the announcement, Fed Chair Powell stated that, “Clearly, today’s 75 basis point increase is an unusually large one, and I do not expect moves of this size to be common”.
Today’s hike comes after U.S. inflation rose to a forty four year high of 8.6% last month, pushing the FOMC to take further action
Oil prices drop to 11-day low, as crude inventories rise and Fed acts
Oil prices dropped to their lowest level in just over ten day, as crude inventories unexpectedly rose in the United States and the Fed delivered the biggest rate increase since 1994.
WTI crude hit an intraday low of $114 per barrel, after it was announced that inventories climbed last week.
Data from the Energy Information Administration showed that inventories rose by 1.956 million barrels last week.
This came as markets had forecasted a drawdown of 1.314 million barrels within that period.
Today’s drop sees WTI now trading lower for back-to-back sessions for the first time since early June.
Bitcoin nears $20,000, hitting fresh 18-month lows
Bitcoin fell to $20,000 during today’s session, hitting its weakest point since December 2020.
As the global economy continues to decline, with many now expecting an imminent recession, crypto prices have seen a steep decline.
Today’s fall is the ninth consecutive day that bitcoin has traded lower, with Ethereum dropping in that same period.
Figures fell on Wednesday as it was also revealed that U.S retail sales had declined by 0.3% last month.
As of writing this, BTC is trading at $21,700.
“I’m only rich because I know when I’m wrong. I basically have survived by recognizing my mistakes.”-George Soros.