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One More & Done: Fed's Rate Peak in Sight

A final Federal Reserve hike on Wednesday in the current interest rate tightening cycle is almost a done deal, according to market bets, even as US recession fears mount.

Photo by Markus Spiske / Unsplash

The prospects of a pause in the Federal Reserve's rate hike activity after the May hike will give digital assets the much-needed fillip, especially for Bitcoin struggling to surpass US$30,000 after hitting that level last month for the first time since June.

The delivery of a 25 basis point (bps) increase is fine for the rates markets. However, the last piece of the jigsaw and, more crucial, are indicators of what will happen next.

For June, the Fed will not provide any guidance at this time. So it's up to the market to make sense of the press conference's jargon.

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