Core Question

What happened at the Fed meeting on October 28th?

This will be pretty short, summarizing only the key points. I don't want to write a long news article and no one wants to read that when you could go online and find a great one written by professionals.

What happened

The Fed voted to keep interest rates at around 4% following a 10-2 vote. Fed Governor Lisa Cook and Cleveland Fed President Beth Hammack both voted for a quarter point increase. Officials said that while inflation was elevated at about 3.7% in September, the economy was booming despite all of the AI headwinds, which helped offset some fears about even higher inflation.

This is because while we think of inflation as only having more money supply, you can also have inflation where there is simply less goods to go around. But since the economy is growing, that has helped reduce that fear.

However, in the press conference, Kevin Warsh did note that they are in a "wait and see" phase, saying that they will wait for more data on the economy before acting as on one hand you have very high inflation at almost 2x about the 2% target but a growing economy.

Crypto?

For the days leading up to the meeting and right after the results of no rate hikes were released, cryptos had initially dipped slightly, before rebounding and BTC trading at about $81,230 as of the time of writing this, up about half a percent.

Meanwhile, stocks wrapped up a third straight day of gains.

However, only time will tell if we are due for a crypto bull run, bear market, or sideways/stagnant market in the future. I will say that this month has been pretty volatile for crypto. We had a massive bull run/surge, and a steep correction, and everything in between. This is really where stablecoins shine to help balance out a portfolio. By having stablecoins, if would help preserve some of your wealth/anchir your portfolio and you could even use it to swap for tokens while on a dip.

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