After the meeting on June 14-15, the US Federal Reserve System (FRS) increased the key interest rate range by 75 basis points at once – to 1.5-1.75%. This is the first time since 1994 that the regulator has made such a sharp increase in the indicator.

At the press conference held after the meeting FOMC Fed Chairman Jerome Powell said the rate could be increased by another 0.5% to 0.75% in July.

Watch President Powell’s statement #FOMC Press conference:
Intro clip: https://t.co/Y3l7YqcWtw
Full video: https://t.co/JjXfKZpKef
Press Conference materials: https://t.co/nAdBVSVVT0

— Federal Reserve (@federalreserve) 15 June 2022

“In the coming months, we will look for evidence of lower inflation. The speed increase still depends on the incoming data, but a 50 bp or 76 bp increase. “It looks more likely at the next meeting,” said Powell.

The regulator also updated its economic forecasts for the worse. The Fed assumes that US GDP will grow by 1.7% for the calendar year (previously estimated at 2.8%).

Overall, the market expected the Fed to raise the key rate – futures predicted a 96% probability of this event. According to TradingView, in the background of the announcement, the S&P 500 closed its trading session on June 15 by almost 1.5%, while the Dow Jones closed by 1%.

The cryptocurrency market also rose after the FOMC meeting. In the past day, Bitcoin prices increased by 2.7%, Ethereum – 4.7%. According to CoinGecko, all digital assets in the top 10 by capitalization were in the green zone.

At the time of writing, BTC is trading around $21,770 while ETH is trading at $1,170.

Recall that on June 14, Mike Novogratz, head of Galaxy Digital, said that Bitcoin prices will stay above $20,000 and Ethereum will not fall below $1,000.