In Bitcoin, after the data from the USA today, BTC went up to $ 27,240.
In addition, after the approval of the debt limit agreement in the USA, all eyes are now on the Fed's interest rate decision in June.
At this point, various thoughts are circulating about the interest rate hikes of the FED, which BTC is closely related to.
Some economists think that the Fed will continue to raise interest rates, while others think that it will take a break.
One of those who thought that the Fed would suspend interest rate hikes was David Wessel, a well-known economist and director of the Hutchins Center for Fiscal and Monetary Policy.
Speaking to CNBC, David Wessel shared his thoughts on the Fed's monetary policy and the expected rate hike.
Wessel, a two-time Pulitzer Prize winner, said:
"I think the FED will pause the rate hikes. In this context, I think it's pretty clear that the FED will skip the rate hikes at its meeting in June.
On the other hand, the decision of the FED to keep the policy rate constant at the upcoming June meeting should not be interpreted as the highest rate reached.
Skipping a rate hike in one month will give the Fed an opportunity to collect more data without further rate hikes."
Apart from Wessel, Philadelphia Fed Chairman Patrick Harker recently stated that economic data tends to support a jump in interest rate hikes in June.
Harker said the Fed is seeing promising signs that rate hikes are working, but said inflation is still well above the Fed's target.
Although some FED members maintain their hawkish stance on inflation, the statements of FED member Harker and famous economist Wessel mean that it is highly likely that the FED will skip the interest rate hike in June, and it seems likely that the FED will enter a stagnation period as of June, in line with the incoming data.
Such a scenario could lead to a nice summer rally in long-oppressed altcoins and Bitcoin.
BTC, which is positively / negatively affected by the FED's interest rate decisions, continues to be traded at $ 26,918 at the time of writing.
*Not investment advice.
