The Fedwatch report rebuked the impact of the Fed's decision on BTC, so what happened to the Bitcoin cryptocurrency.
According to a Fedwatch report, the US Federal Reserve will raise interest rates by 50 basis points at the Open Market Committee meeting later this month.
And that's after Federal Reserve Chairman Jerome Powell's speech.
Speaking before the Senate Committee on Banking, Housing and Urban Affairs, Powell emphasized in the Semi-Annual Monetary Policy Report that the central bank continues to raise interest rates.
And that during the coming months, with the speed and tightening of US monetary policy.
The Fed is preparing to raise interest rates
Powell added that the recent economic data came out stronger than expected, which means the Fed will continue to raise interest rates.
The data indicates a faster tightening of monetary policy and a willingness to increase the pace of interest rates.
In the same context, Powell's remarks affected the price of Bitcoin to nearly 1.7%.
The digital currency reached below $21,934, before seeing a recovery on track to $22,277.
On the other hand, the price of ETH has fallen; The second largest digital currency in the world by about 1% from the $1565.46 to $1544.45 price range.
The financial markets witnessed a decline in the Dow Jones Industrial Average by 1.4%, while the S&P 500 fell by 1.2%.
The Fed uses the interest rate mechanism to realign supply and demand which in turn contributes to higher prices.
Rates have increased by about 4.5% basis points over the past year, to calm the US economy, which was affected by the epidemic.
Which resulted in increased demand resulting from disruptions in global supply chains.
The federation uses many measures such as; Consumer price index, personal consumption expenditures, and employment data in the United States.
To make sure that changes in monetary policy affect the prices paid by consumers in America.
Inflation and the increasing demand for wages
Powell confirmed the restriction of the labor market, as indicated by the unemployment rate of 3.4% in January 2023, which represents a major challenge to lower prices.
The central bank is awaiting employment data for the month of February 2023, which is scheduled to be released during this week, which indicates the health of the market within the United States.
In addition to the ADP non-farm payroll report, which is scheduled to be released on March 8th, which affects the employment rate within the US as well.
