Macro concern keeps the Bitcoin price below the $20,000 mark.
Wall Street anticipates a rate rise of 75 basis points from the Federal Reserve this month.
The U.S. Federal Reserve is expected to raise interest rates by 75 basis points during today’s FOMC meeting (September 21). As the Federal Reserve works to rein in inflation, several financial institutions, including Goldman Sachs, Wells Fargo, JPMorgan, and Morgan Stanley, expect a rate rise of 75 basis points (bps) this month. Meanwhile, macro concern keeps the Bitcoin price below the $20,000 mark.
Wall Street anticipates a rate rise of 75 basis points from the Federal Reserve in September, rather than the 100 basis point increase that some fear might trigger a recession. As a result of this rate increase, the federal funds rate is now at its highest level since 2008. The Federal Reserve’s benchmark borrowing rate will increase from 3.0% to 3.25% from the existing range of 2.25% to 2.50%.
Economic Recession?
The Federal Reserve is expected to hike interest rates by 25 basis points in September, as previously anticipated by Goldman Sachs. After that, in both November and December, there will be a rate increase of 50 basis points. The investment banks JPMorgan and Morgan Stanley agree that a rate rise of 100 basis points would be detrimental to the economy.
Meanwhile, Michael Schumacher, managing director at Wells Fargo, has argued that the Fed should implement a flat 150 basis point cut rather than risking panic on Wall Street. David Rubenstein, a billionaire and co-founder of the Carlyle Group, thinks the proposed 100 basis point increase in interest rates would have a negative impact on the economy and the stock market. The crypto market is trading in red and so is Bitcoin and any further negative news will definitely trigger the slide further.