Fed Hike Weighs on Risk Assets as BTC Hits $81,700

The Federal Reserve raised its target range by 25 basis points to 3.75%-4.00% on September 16, with Minneapolis Fed President Neel Kashkari stating that inflation remains too high across the economy, including after food and energy are excluded.

Most Fed officials expect at least one more increase this year, which has led to a surge in the 10-year Treasury yield, briefly moving above 5% on Friday before falling to around 4.98%.

The combined effects of high energy costs, restrictive interest rates, and changing earnings expectations are causing risk assets to absorb significant pressure.