<p>The U.S. Federal Reserve raised the federal funds rate by 50 basis points, increasing it to a range of 4.25% to 4.5%, the highest since 2007.</p> <p><span data-contrast="auto">Today's interest rate decision was largely expected, with traders pricing in such a rise ahead of time. The price of bitcoin dipped below $18,000 following the news.</span></p> <p>The central bank <a href="https://www.federalreserve.gov/newsevents/pressreleases/monetary20221214a.htm">said</a> it remains "highly attentive" to inflation risks. <span style="font-weight: 400;">Policymakers projected rates would peak next year at 5.1% before being cut to 4.1% in 2024. That’s higher than previously predicted. </span></p> <p><img class="wp-image-195047 size-full" src="https://www.tbstat.com/wp/uploads/2022/12/fed-50-scaled.jpg" alt="" width="2560" height="1967" /></p> <p><span style="font-size: 8pt;">Source: federalreserve.org &amp; bls.gov.org</span></p> <p>Bitcoin immediately fell on the news. The leading crypto by market cap dipped below $18,000 briefly, from $18,355 before the announcement. The move appears to be a classic example of "buy the rumor, sell the news."</p><br /><span class="copyright"><p>© 2023 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.</p> </span>