This week was a week when critical data for Bitcoin and altcoins were announced. At this point, while the US PPI and CPI data were announced, the positive data enabled BTC and altcoins to mobilize again.
While Bitcoin rose above $66,000 following the positive CPI data yesterday, New York FED President and FOMC Vice President John Williams made new statements.
Speaking to Reuters, Williams said that they welcomed yesterday's April inflation data, but that these data were not sufficient for the FED to reduce interest rates at the moment.
Stating that April data was positive after a few months of negative data and that there may be a gradual slowdown in interest rates, Williams said that monetary policy is restrictive enough for now.
The FED member also stated that there is no need to wait for inflation to reach the 2% target to reduce interest rates. Williams, who thinks that there is no need to increase interest rates at the moment, said:
“The April CPI data was a positive development after a few disappointing months.
I think monetary policy right now is restrictive enough and in a good place.
I don't see any indication right now that says there is a reason to change the stance of monetary policy.
I don't see the need for interest rates to increase right now.
I do not expect to see more reliable data for us to cut interest rates in the coming period.
Inflation is moving towards the 2 percent target in the very near term.
We do not need to wait for inflation to reach exactly 2% for easing policy. “Before the Fed cuts interest rates, it needs to trust that inflation will be kept at 2%, not that it reaches 2%.”
Bitcoin continues to trade at $66,160 at the time of writing.
*This is not investment advice.