US Fed chair hints at two more rate hikes while crypto suffers volatility

The US Federal Reserve (Fed) chair Jerome Powell hinted at two more rate hikes expected to come this year. According to CNBC, the statement came after the Federal Open Market Committee (FOMC) decided to pause the consecutive rate boosts.

The Fed raised its interest rates ten consecutive times since March 2022 — from a starting point of 0.13% on March 22, 2022, to 5.13% on the 10th rate hike on May 3 this year.

Moreover, according to a CNBC report, the central bank holds a hawkish stance on its interest rates until its meeting on July 25-26. 

“We have raised our policy interest rate by five percentage points, and we’ve continued to reduce our security holdings at a brisk pace. We’ve covered a lot of ground and the full effects of our tightening have yet to be felt.”

US Fed Chair Jerome Powell

Per the CNBC report, the US stocks witnessed immediate pressure as the news of two more rate hikes emerged. The crypto market has also been uncertain over the past 24 hours. Its market cap plunged by 3.56% — a roughly $42 billion fall.

Furthermore, the statement of two more rate hikes for this year comes while the central bank has already pushed its interest rates three times since February.

As the crypto market, especially bitcoin (BTC), fell after the pause on rate hikes, the crypto Twitter has shown its frustration. 

Here are some reactions from crypto Twitter:

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