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Bitcoin jumped to $49,000 as Fed left interest rates unchanged

Bitcoin jumped to $49,000 as Fed left interest rates unchanged

U.S. Federal Reserve officials decided to leave interest rates unchanged at Wednesday's meeting, keeping them between zero and 0.25%, U.Today reported.

The price of Bitcoin rose 3.4% on the news, hitting a new intraday high above $49,000 on the Bitstamp exchange. The Fed will maintain near-zero rates until full employment is achieved, its officials said in a statement. During a news conference, Fed Chairman Jerome Powell said it is not yet clear how long the labor market deficit will last. The politicians' median forecast calls for three rate hikes in 2022. Three more hikes are expected in 2023. The central bank also doubled the pace of its $30 billion-a-month bond-buying cut. Market observers have been looking for signals of the Fed's determination to decisively withdraw economic support amid lingering concerns about inflation. The central bank plans to wind down its massive stimulus program, which many believe contributed to rising asset prices such as Bitcoin, in March.

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