U.S Fed Reserve Officials in Favor of Further Interest Rate Hike

• The US Federal Reserve may be forced to maintain its rate hikes due to inflation.
• Peter Brandt, a seasoned trader, claims the Bitcoin price has the potential to drop $24,800.

Despite the disastrous debt limit issue, US Federal Reserve officials are considering more rate rises, including the presidents of the Federal Reserve Banks of Minneapolis and St. Louis. The debt limit agreement will affect the price of Bitcoin because the US Treasury will issue government bonds to replenish funds depleted during the financial crisis.

The US Federal Reserve may be forced to maintain its rate hikes due to inflation and the tight labor market. Last week’s address by Fed Chair Jerome Powell offered no clear guidance.

Backing Interest Rate Hike

Not only does Dallas Fed President Lorie Logan support more interest rate hikes, but so do Fed Governor Philip Jefferson, New York Fed President John Williams, Federal Reserve Board Governor Michelle Bowman, and others.

On May 22nd, James Bullard, president of the Federal Reserve Bank of St. Louis, suggested that the Fed would need to hike interest rates twice this year before doing a U-turn. In a bold move, the Federal Open Market Committee (FOMC) has increased the target interest rate to the 5–5.25% range.

President Neel Kashkari of the Minneapolis Fed agrees that interest rates need to be raised above 6% to rein in inflation. He said that because inflation is still below goal, the Fed’s decision not to raise rates in June should not be seen as a halt or a pivot.

Peter Brandt, a seasoned trader, claims the Bitcoin price has the potential to drop below the $26,800 barrier, to $24,800. The price of Bitcoin will recover from the drop and rise further. Meanwhile, he is still certain that Bitcoin will reach $40,000 soon.