Bitcoin ETFs experienced a net outflow of funds in late August

The Federal Reserve has raised interest rates for the first time since 2023, leading to an increase in Bitcoin prices.

In the summary of the Federal Reserve's economic forecast, the long-term level of the benchmark interest rate is predicted to rise to 3.2%, previously 3.1%. Analysts believe this reflects the impact of large-scale AI investment on neutral interest rates. Federal Reserve Chairman Kevin Walsh stated that the US economy has shifted from a savings surplus to a surge in investment. (Source: Jin Shi)

Spot silver fell after the Federal Reserve's interest rate decision, now trading at $63.585 per ounce. AI interpretation: The Federal Reserve's decision to keep interest rates unchanged directly suppressed the safe haven premium of precious metals. The market's expectation of a shift in monetary policy has been further postponed, and funds have been withdrawn from non yield assets. The high interest rate environment continues to weaken the investment attractiveness of silver. This policy direction clarifies the downward pressure on precious metal prices in the short term.

The median forecast of the Federal Reserve's dot plot shows that interest rates will be raised once this year, remain unchanged in 2027, decrease in 2028, and remain between 3.5% and 3.75% in 2029. The Federal Reserve has raised its long-term expectation for the federal funds rate to 3.2%, with a June forecast of 3.1%. 18 out of 19 policy makers submitted interest rate outlook forecasts, but Federal Reserve Chairman Kevin Walsh did not provide specific forecasts. The Federal Reserve's forecast shows an overall higher inflation rate this year and in the coming years. (Source: Jin Shi) AI interpretation: The Federal Reserve clearly conveyed its policy stance of maintaining high interest rates in the long term through a dot matrix, completely breaking the market's illusion of rapid interest rate cuts in the short term. The rise in the interest rate path directly reflects the decision-makers' high vigilance towards inflation stickiness, and this hawkish guidance will force the market to reprice asset valuations. The upward adjustment of long-term interest rate expectations marks a more prolonged tightening cycle of monetary policy, which poses a sustained pressure on risk assets. The decision-making level has announced to the market their firm determination to combat inflation by adjusting the expected end point of interest rates, and a high interest rate environment will become the norm in the coming years.

On the 17th, the Federal Reserve implemented its first interest rate hike in three years. The median forecast of the dot plot shows that interest rates will be raised once this year, and will remain unchanged in 2027. Interest rates will decrease in 2028 and remain between 3.5% and 3.75% in 2029. The Federal Reserve has raised its long-term expectation for the federal funds rate to 3.2%, with a June forecast of 3.1%. 18 out of 19 policy makers submitted interest rate outlook forecasts, but Federal Reserve Chairman Kevin Walsh did not provide specific forecasts. The Federal Reserve's forecast shows an overall higher inflation rate this year and in the coming years. (Source: Jin Shi) AI interpretation: The Federal Reserve clearly conveyed its policy stance of maintaining high interest rates in the long term through a dot matrix, completely shattering the market's illusion of rapid interest rate cuts in the short term. The rise in the interest rate path directly reflects the decision-makers' high vigilance towards inflation stickiness, and this hawkish guidance will force the market to reprice asset valuations. The upward adjustment of long-term interest rate expectations marks a new stage in the tightening cycle of monetary policy, and the high interest rate environment will continue to substantially suppress economic growth. This decision-making path clearly indicates that the Federal Reserve prioritizes ensuring price stability, and financial markets must adapt to longer-term liquidity tightening pressures.