Feds Expected to Hike Interest Rate Again as Crypto Market Falters

With the Federal Open Market Committee (FOMC) meeting on Wednesday, some analysts predict that the committee would hike interest rates aggressively to tackle increasing inflation. According to Reuters, inflation hit a 40-year high of 6.6 percent in March, which is three twice the Federal Reserve’s target. The Bank is likely to raise interest rates by a half-point at each of its next three sessions, based on this pattern. Others who are concerned about rising inflation include ING Group, Dutch multinational banking, and financial services organization, whose chief international economist James Knightley predicted a jump of 50 basis points on Wednesday in a study. According to the research, “inflation concerns outweigh a temporary drop in GDP.” Interest rate hike speculation has had a significant impact on all areas of the economy, with the stock and cryptocurrency markets performing poorly. Rising inflation and crypto market crash The stock market had its worst month since March 2020 in April, with the S&P 500 shedding 8.8%, the Nasdaq 13.3%, and the Dow 4.9 percent. In the end, the Nasdaq has had its worst four-month start in more than 50 years. The behavior is similar to that of the crypto industry, whose market cap has been steadily declining over the same time period. The crypto space had a market valuation of more than $2 trillion at the beginning of the month, but it ended up at around $1.7 trillion. Bitcoin and Ethereum,...