After the Fed's announcement of a 25 basis point rate hike, which did not come as a surprise, FED Chairman Jerome Powell is holding a press conference.
- Powell: From now on, we will follow the data, take steps and tighten our monetary policy if necessary.
- Powell: Inflation has started to slow since mid last year, but the road to our 2% target is long.
- Powell: We think we will see the temporary effects of rate hikes on inflation.
- Powell: No pause decision was made today
- Powell: We're going to set the interest rate meeting by meeting.
- Question: Will there be an interest rate increase in June? Powell: No pause decision was made today. We will look at the data we have and decide from meeting to meeting.
- Powell: Agency officials generally predict a moderate recession, but my prediction is for moderate growth, not a recession.
https://twitter.com/bitcoinsistemi/status/16538301111659958294
Bitcoin (BTC) price movements during Jerome Powell's speech:
With the interest rate decision announced at 21:00 CET, the FED increased interest rates for the 10th time in a row, reaching the highest level since 2007.
The latest measures taken by the FED against inflation mainly focus on raising interest rates, which is the cost of borrowing. By making money more expensive, the Fed hopes to reduce demand for goods and services, thereby slowing the rise in prices.
The Fed's rate hikes are motivated by its dual purpose of maintaining price stability and maximum employment. The Fed is targeting an annual inflation rate of 2%, but inflation has been well above this level for months.
*Not investment advice.
