Additional Interest Rate Increase Signal from FED Member!

As you may remember, the FED, which announced the last interest rate decision of the year and left interest rates constant, signaled that interest rate cuts may be possible in 2024.

While expectations for the FED to cut interest rates in the first quarter of 2024 are rising, the statements made by FED members are being closely followed.

At this point, Richmond FED President Thomas Barkin made statements about the FED’s policy, inflation and interest rate cuts.

Stating that inflation continues to be the focus of the FED, Barkin said that the FED will act according to inflation data regarding interest rate cuts or increases.

Barkin, who declined to comment on the date or number of interest rate cuts, said in his speech to the Raleigh Chamber of Commerce in North Carolina that additional interest rate increases are still on the table.

“The Fed has made real progress in containing inflation without major damage to the labor market, and a soft landing scenario for the economy is becoming increasingly plausible.

However, additional interest rate increases are still on the table and I think there is potential for an interest rate increase.

At this point, the timing and pace of any rate cuts are determined by whether inflation continues to decline and the economy continues to run smoothly.

Therefore, the economic data coming in 2024 will be important in the FED’s decision to cut interest rates.”

Bitcoin hit its peak of $69,000 in November 2021, when the FED started increasing interest rates. Since the subsequent bear market is directly related to the FED’s interest rate increases, it is thought that a policy change here may return BTC to its old days.

*This is not investment advice.

Source