The rate hike was implemented and Powell made remarks to boost the market. BTC rose in the short term

The Federal Reserve concluded its two-day meeting with Chairman Jerome Powell announcing another rate hike of 0.75 percentage points as policymakers try to cool decades-high inflation levels. Major stock indexes surged as Fed Chairman Jerome Powell spoke at a press conference and hinted that the central bank may slow the pace of rate hikes, with the Nasdaq 100 on track for its best one-day gain since November 2020. Meanwhile, crypto markets rose briefly, with Bitcoin briefly breaking through $23,000.

The market had expected a rate hike, and Powell's comments to boost the market and the rate hike have brought a breather to the stock market and crypto market. A strategist at BlackRock said Powell has hinted that the Fed is aware of the negative impact of its rate hike on the economy, which boosted the stock market on Wednesday afternoon.

Powell said the Fed may slow down the pace of rate hikes in the coming months. No specific guidance will be provided for the September meeting. Rate hikes may be made again, but they will be data-driven, and no decision has been made on when to slow down rate hikes. At the same time, he does not think the United States is in a recession because too many areas of the economy are performing too well. But growth is slowing down for reasons we understand.

However, facing Powell's remarks to boost the market, many analysts believe that this is not yet a buying opportunity for investors. Jack Ablin, chief investment officer of Cresset Capital, said that although all eyes will be on the Fed today, the real show will begin when the US inflation data is released on August 10. We and the market are betting on a weaker number.

Rick Rieder, managing director of BlackRock and chief investment officer (CIO) of BlackRock Global Fixed Income, told CNBC that he expects the Federal Reserve to raise interest rates twice more after raising interest rates by 0.75 percentage points on Wednesday. He said: "I think what this means is that you will see 50 basis points in September, and they may raise interest rates by another 25 basis points. I think that's it. The data speaks for itself. The key is to look at what the Federal Reserve does, not what they say."

In addition, Ed Moya, senior market analyst at Oanda, said that for investors who are eager to buy risky assets and are ready to buy risky assets, the time may not be ripe yet. Until we see evidence that inflation is falling, there will not be a clear green light to buy risky assets. Inflation risks will continue to be elevated due to possible energy shortages, supply chain issues will not ease given the weak global outlook, and pandemic-related issues remain troubling.

It is worth noting that despite the short-term rise in the crypto market, Tobias Adrian, director of monetary and capital markets at the International Monetary Fund (IMF), recently warned in an interview that the cryptocurrency industry may get worse.

Adrian believes that more cryptocurrency projects may fail in the future. It is worth noting that the current cryptocurrency crisis was largely triggered by the collapse of the TerraUSD (UST) algorithmic stablecoin, which led to the collapse of the entire ecosystem. In the near future, more vulnerable fiat-backed stablecoins may experience bank runs. He specifically mentioned stablecoin issuer Tether as an example of such a project. Nevertheless, Adrian admitted that some stablecoins are less vulnerable to such crises. At the same time, if the US economy falls into a recession, digital assets will see a more intense sell-off.