Effect of FED Meeting and Indian Budget on Crypto World

In 2023, inflation worries will prompt the Fed to raise rates again. US inflation is dropping, according to recent data. In November, the CPI reported 7% inflation, down from June's 9%.

It is almost certain that the Fed's policy-making body will increase the federal fund's target range to 4.50%-4.75%. That would be a shift down to a 25-basis-point rise, which was the FOMC's typical rate hike up until last year when it was lagging behind in normalizing its ultra-loose monetary policy. FOMC expects “continuing rises in the target range.” Keeping "increases" in its policy statement implies at least two more 25-basis-point raises.

Recent Fed speakers have supported slowing rate hikes, pointing to a 25-basis-point hike. The announcement is to be made on 1st Feb.

Powell's press conference is yet to convey exact signals.

Talking about the adoption of Cryptocurrency in India, the IT Minister Gives a Green Signal to Cryptocurrency in India. On January 19, an Indian government official Rajeev Chandrasekhar spoke about cryptocurrency at an event in Bengaluru. Rajeev asserted that “cryptocurrencies are not illegal in India if legal procedures are followed.”

The comments of the IT Minister are significant since the Indian government will present the annual budget for the upcoming fiscal year on February 1.