What is the Federal Interest Rate, Why Do Investors Care About It, and How Does It Impact Cryptocurrencies?
First of all, the federal interest rate is the percentage set by the Federal Reserve, the central bank of the United States, which is imposed on commercial banks to lend to each other. Please note that most global banks follow the Federal Reserve in case of raising or lowering. In other words, this rate is used as a main tool in monetary policy to control (i.e. a control machine) inflation and stimulate or slow down the economy.