The FED announced its November interest rate decision on Wednesday and kept interest rates constant in line with expectations.
Although FED President Jerome Powell stated that they are not considering interest rate cuts at the moment, he stated that they are determined to reduce inflation and said, “If we decide that we need to tighten, we will tighten.” said.
Powell added that they will continue to move forward on increasing interest rates depending on the data.
Following the FED interest rate decision and Powell’s statements, Atlanta FED President Raphael Bostic also made statements.
Speaking to Bloomberg, FED official Bostic stated that the current course of the US economy shows that there will be no need for further interest rate increases.
Highlights from Bostic’s statement are as follows:
“Given the economic outlook, the Fed’s policy is probably in the right place.
I think where we are now will be restrictive enough to get us to 2% inflation.
The Fed has time to monitor the data and be patient.
The FED has a lot of data to evaluate until the next meeting.
This data will give us more signals about what is going on in the economy and we will take steps accordingly.
“And according to my predictions, there will be no recession in the United States.”
Bostic, one of the most dovish members of the FED, has been arguing since June that the FED should postpone interest rate hikes because the aggressive actions in the past will slow down the economy and gradually reduce price pressures.
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 end the bear market and BTC may return to its old days.
*This is not investment advice.
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