Interest rate decisions

Summary

Central banks such as the US Federal Reserve set a key interest rate. Higher rates make borrowing more expensive and usually weigh on riskier assets, including crypto. Lower rates tend to do the opposite. Markets often expect the decision in advance, so the statement and the press conference about future moves can matter more than the decision itself.

Key points

• Higher rates usually weigh on riskier assets.
• The decision is often expected; the outlook for future moves matters most.
• Watch the statement and the press conference, not only the number.

Check yourself

Why can the press conference matter more than the rate decision?

Practice