FED May Stop Raising Interest Rates In June, BTC Price Moves To $27,000

Key Points:

• A policy of tightening credit conditions due to tensions in the banking sector can help the agency not raise interest rates too high.
• Several officials, including Fed chair Powell, have hinted that they may pause raising interest rates to assess the impact of tensions in the banking sector.
• BTC’s price is uncertain as it fluctuates continuously from around $26,500 to $27,000.

Federal Reserve Chairman Jerome Powell said stress in the banking system likely means the central bank won’t have to raise interest rates too high to slow the economy.

Speaking at a conference held at the headquarters of the Fed, Mr. Powell said that although financial stability tools help ease the difficulties of the banking sector, on the other hand, developments in this sector are contributing to tightening credit conditions and have the potential to affect the economic growth momentum, employment situation and inflation of the US economy.

Mr. Powell said the central bank’s benchmark interest rate, which affects many consumer and business loans, is now high enough to limit borrowing, spending, and economic growth. Fed officials expect that slower growth will reduce inflation over time.

In speeches this week, several Fed officials have signaled support for a pause in rate hikes based on the view that the rate hikes have not yet had a complete impact on the economy and may have a negative effect on the economy. It may take months to do so. In view of that, the Fed should take the time to assess the consequences of its actions and avoid excessive credit tightening to trigger a recession. On Friday, Powell seemed to endorse that approach.

The Fed chair also suggested that “the risks of doing too much versus doing too little are becoming more balanced.” That marks a shift from earlier this year when Powell often said the risk of raising rates too little to combat inflation outweighed the risk of raising them so high as to cause a deep recession.

But others expressed confidence that the Fed would have to raise rates further to rein in persistent inflation. Lorie Logan, president of the Federal Reserve Bank of Dallas, said on Thursday that inflation is still too high, and the latest economic data has not justified a pause in price increases.

The US Central Bank raised interest rates by 0.25 percentage points after its meeting in early May, raising the benchmark overnight lending rate to 5% – 5.25% and signaling the possibility of a temporary pause. Stop the interest rate hike. The Fed will hold its next policy meeting on June 13 and 14.

In the context of market uncertainty, bitcoin price does not fluctuate too much. The price continuously fluctuates between $26,500 – $27,000.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your research before investing.

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