On December 13, the U.S. Federal Reserve (Fed) held the target range for the federal funds rate at 5.25–5.5%.
The decision matched market expectations. The Fed said inflation has fallen over the past year but remains elevated. The agency also noted the unemployment rate is low.
In the long run, the Fed aims for 2% inflation and maximum employment.
At the time of writing, the cryptocurrency market had barely reacted to the news. According to CoinGecko, prices for the largest-capitalization digital assets showed little movement.
Bitcoin price breached the $42,000 mark. At the time of writing, the total market capitalization stood at about $1.65 trillion.
In June, the Fed for the first time since March 2022 held the range for the federal funds rate at 5–5.25%. Bitcoin price fell below $26,000.
In July, the rose to 5.25-5.5% annualized, but crypto prices reacted only modestly to the changes. In September and November they kept the rate at the previous level.