Fed Rate: YoY Change (%)

Fed Rate: YoY Change (%)

The circle year-on-year percentage change for the Federal Reserve rate.

This alternative view to absolute shows the relative intensity of moves made in the Fed rate. This can be useful to highlight the extent to which the Fed Rate is dominating the narrative in global markets.

Rising interest rates can impact confidence in markets, this can potentially spill over to Bitcoin. Rising interest rates can cause some investors to move towards perceived low-risk assets such as fixed-rate bonds.

It is argued that lower rates help boost household balance sheets and incentivize spending, which can help economic growth. Higher interest rates, however, can reduce spending and investment in new goods or services.

The Federal Reserve rate is the interest rate at which banks lend money to each other overnight. The Federal Reserve sets the federal funds rate by adjusting the interest rate it pays on excess reserves held by banks at the Fed. The Fed steers the world’s largest economy by setting the price of borrowing money.