While the eyes of traditional financial markets turned to the United States, Donald Trump came to the fore with his statements before the Federal Reserve’s decision. “Paris is on fire, China is rolling, the dollar is getting stronger, the victory is ours, but despite everything, the FED is considering a rate hike, it’s unbelievable.”
Funding Ratio Rises 25 Bps
Fed increased interest rates as expected after the monetary policy that lasted two days and was completed hours ago.
In the official statement, it was stated that the Fed’s funding percentages increased by 25 basis points and the new current level was changed from the 2.00-2.25 band to the 2.25-2.50 band. While emphasizing that the decision was taken unanimously, within the framework of these developments, the bank has activated the fourth rate hike of the year, after three increases by 25 basis points in 2018.
2019 Interest Rate Expectations eri
In the news in Bloomberg, it was stated that the interest rate hike expectations for 2019 decreased after this rate hike in the markets, while the number of interest rate hikes planned by Fed officials for the next year was reduced from three to two.
Before the last meeting of the FED in December, as seen in the chart, three interest rate hikes were planned in 2019.
Dollar, Euro and Bitcoin
Fed’s There was a slight increase in value compared to the Turkish Lira in the exchange rates, which showed a downward trend before the interest rate decision. While the /TRY rate was in the 5.27 band before the decision, it first rose to the 5.30 band and is traded at 5.2848 as of the broadcast time.
EUR/TRY rate was traded at 6.0188 levels, while the US stock markets were trading after the announcement. if lost lived. After this decision, which could trigger the money to move from stocks to banks, the Dow lost more than 350 points.
Bitcoin, the number one currency in the crypto money market, is currently trading in the 3.857 band after testing the level of 3.950 against the dollar during the day.
Compound CEO, speaking to Fortune on the subject, stated that Bitcoin and cryptocurrencies could be negatively affected by the Fed’s rate hike decisions.