The Federal Reserve is expecting to raise the federal funds rate in the upcoming meeting in May, which will possibly either be by 0.25 or 0.50 percent. The CME Fed Watch tool, which is used to estimate the probability of such a hike, has indicated 72% probability at least a 0.25 change. This comes as no surprise due to the strong show of resilience in the US labor market. Jesse Wheeler of CNBC’s Morning Consult believes that this surge in jobs, along with the unemployment rate at 3.5%, is strong enough to result in another rate hike. The Federal Reserve is obligated to maximize employment and stabilize dollar prices according to its mandate from Congress.

The stock market showed no immediate result to Monday's movements. The S&P 500 Index rose slightly by 0.1%, the Dow Jones Industrial Average added 101.23 points (0.3%), and the Nasdaq Composite inched lower by 0.03%. On the other hand, the Bitcoin price surged by 7%, pushing itself steadily to break the resistance at $30,000. It remains unclear if the rally occurred due to or despite the possible rate increases. Higher interest rates can limit the liquidity which could eventually lead to destabilization of investments, including crypto prices. The Consumer Price Index numbers for March, which was recently released, did not affect Bitcoin's bullish momentum. It is said to remain firmly above $30K.



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