Fed: Fixed debt reduction, interest rates triple next year! Bitcoin 6%, Ethereum 12%

The US Federal Reserve (FED) announced on the 16th that it would double its monthly reduction contract in Taiwan to $ 30 billion from January next year. March next year. According to a bitmap released by the Federal Reserve, the Fed plans to hike interest rates at least three times after the rate cut.

Quantitative easing is expected to end in March of next year, with the growth rate picking up.

According to Bloomberg News, the Fed will only buy $ 60 billion in Treasury bonds starting in January next year (half of November of this year and two-thirds of December of this year). He could be jailed in March next year.

At least 18 Fed officials expect inflation to rise next year, with most expectations rising 3 meters (0.25% per share), according to a dot matrix report released by the Fed . Interest rates will rise three times in 2022 and twice in 2023 and 2024 ... President Powell has said he will not start raising interest rates until the debt is reduced.

Rising inflation and GDP expectations are changing

The Fed's rate hikes come as no surprise to lower inflation, with Fed data forecasting inflation to rise to 5.3% in 2021 (4.2%) and 4.4% in the range. not aggregated with food and energy requirements. (previously 3.7%). Headline inflation in 2022 is projected at 2.6%, with a significant range of 2.7%, all higher than the previous estimate.

Unemployment has not fallen and financial worries on the rise After the press conference, the Fed pledged to keep prices stable when removing a currency note (as it is also used as a complaint by many parts). The Fed said it expects unemployment to fall to 4.3% in 2021 from 4.8% in September.

The Fed also revised its GDP growth record for 2021 to 5.5% (first 5.9%), 4% in 2022 (first 3.8%) and 2.2% in 2023 (first 2.5% ).

U.S. thiab Crypto Markets stocks rebound

As soon as news of the Fed broke, three major markets in the United States, the Dow Jones, the S&P 500 and the Nasdaq Composite, all closed.

The Dow Jones Industrial Average rose 1.08% to 383.25 points, up 383.25 points to 35,927.43, the S&P rose 1.63% and 75.76 points to 4,709, 85 points, and the Nasdaq Composite rose 2.155% to 2.15%.

The cryptocurrency market also continued to rise, with Bitcoin (BTC) up 5% on the hour, with the morning high of 6.4% to $ 49,500 (close at 48,874 before the close date) and ETHereum (ETH) in 1 hour it rose 8% in the first half, and the highest dawn rose 12.5% ​​to $ 4,097, and before the close it was reported at $ 4,020, with 4K protection lines.