As expected, the American federal reserve maintained its rate of federal beach of federal reference funds of 4.25% to 4.50%, the first break since the start of the Central Bank policy last September.
The policy declaration that accompanies it noted that the unemployment rate had stabilized at a “low level” and that inflation has remained “somewhat high”. The wording was a fellowship because it deleted last month’s reference to the “progression” of inflation, moving to its target of 2%.
Under pressure for most of this week, the Bitcoin price (BTC) dropped to $ 101,800 shortly after the news. American shares have added to the losses of the day, the NASDAQ dropped by 1.1% and the S&P 500 less than 0.9%. The dollar and gold have been little changed and the 5 -year treasure yield increased by 5 base points to 4.59%.
Since the drop in Fed rates in first September, the rate of federal funds has been reduced by 100 base points. The yield of the US Treasury at 10 years old, however, went to the opposite direction, going to 4.6% of 3.6% – a divergence between short -term and long -term rates that have rarely been observed.
This divergence as well as a series of stronger than expected reports on the economy and inflation have not been lost for the Fed. After the bank’s December meeting, President Jerome Powell clearly said that all other rate drops – at least for the moment – were pending.
The press conference after the Powell meeting begins shortly, during which the market participants will seek additional advice on future policy.
