Fed does not raise interest rate (for now) -- let the markets rejoice

The U.S. fed just announced that they would not be raising interest rates at the moment. If they had, then inflation would have been projected to be worse than anticipated.

This is a short-term plus for crypto as risk-on investors are likely to head back into the markets.

Inflation is still out there, and growth forecasts are being cut left and right for the U.S., China, and others. Rate hikes are also coming sooner or later, just not right now (expected in March.)

This does give us a bit of breathing room though, so overall, much appreciated good news after the recent bloodbath.

Longer term though 2022 and 2023 are shaping up to be tough for global economies. Fed chairman is speaking today 1/26, at 2:30pm EST so hang tight, and carry on . . .

**Update from the FOMC statement **

The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. In support of these goals, the Committee decided to keep the target range for the federal funds rate at 0 to 1/4 percent. With inflation well above 2 percent and a strong labor market, the Committee expects it will soon be appropriate to raise the target range for the federal funds rate.

Keeping rates steady until the expected March raise is good news as they could have acted earlier than expected if inflation was worse.

By the time they raise rates in March (if it isn't an exceptionally large %, means that the markets largely bake this expectation into current prices, i.e. it won't be a shock when it happens.)

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• FOMC Statement: https://www.federalreserve.gov/newsevents/pressreleases/monetary20220126a.htm
• Reuters: https://www.reuters.com/business/finance/inflation-fighting-fed-likely-flag-march-interest-rate-hike-2022-01-26/