Jerome Powell, the head of the U.S. Federal Reserve, said at the FOMC press conference that the Fed is very committed to limiting inflation. He said that at some point in the future, it will make sense to slow down the rate of rate increases.
Powell hinted that rate hikes might slow down over the next two meetings. But he said that no such decision had been made yet and that it would be talked about at the next meeting in December.
“Without price stability, the economy does not work for anyone.”
As soon as the Fed said that interest rates would go up by 75 basis points for the fourth time in a row, the prices of cryptocurrencies turned green, and Bitcoin showed a slight upward trend. The price of Bitcoin as of this writing is $20,726, which is an increase of 1.45% in the last 24 hours, according to the price-tracking website CoinMarketCap.
Slower Rate Hike In Next Meeting
Powell said that it might be time to slow down rate hikes “as soon as the next meeting.” This could be a good sign for the market, which was expecting a 75-basis-point rise this time, and a sign that interest rates will rise more slowly in December 2022.
“We still have some ways to go. Incoming data since our last meeting suggests that the ultimate level of interest rates will be higher than previously expected.”
In its statement, the committee said that it would keep an eye on how new information affects the economic outlook. It said that the committee would be ready to change the monetary policy stance as needed. It also said that risks that could make it hard for the committee to reach its goals would be looked at.
The future increases in interest rates would depend on how much monetary policy gets tighter over time. “When deciding how fast the target range will go up in the future, the committee will look at the cumulative tightening of monetary policy, the time it takes for monetary policy to affect economic activity and inflation, and changes in the economy and the economy’s finances.”
