Federal Reserve Member Michelle Bowman gave signals today that the Fed may continue with interest rate hikes. Bowman stated that the Fed will likely need to raise interest rates to lower inflation and emphasized that inflation data will play a critical role in the interest rate decision.
Fed to Continue with Interest Rate Hikes?
The Federal Reserve raised its policy rate by 25 basis points in the July meeting, in line with expectations. Speaking to the press after the interest rate decision, Fed Chairman Powell stated that important indicators will play a significant role in the August interest rate decision and additional rate hikes may be possible in the coming months.
Following the 25 basis point interest rate hike by the Fed, the leading cryptocurrency Bitcoin did not experience a sharp price movement in either direction. With the cryptocurrency market showing a more sideways trend in recent weeks, BTC also started consolidating around the $29,000 price levels.
Meanwhile, as the low volatility and uncertainty continue in the cryptocurrency market, all eyes are on the Fed’s August meeting. Fed member Bowman gave signals today that interest rate hikes may continue.
Critical Statements from Fed Member
Federal Reserve Member Michelle Bowman gave signals today that the Fed may continue with interest rate hikes. Bowman emphasized that the Fed will likely need to raise interest rates to lower inflation and highlighted that inflation data will play a critical role in the interest rate decision. Bowman also expressed support for the Fed’s decision to raise the policy rate by 25 basis points in the July meeting, considering the current levels of inflation.
Bowman stated that the recent decline in inflation is a positive sign, but current inflation remains significantly above the target. She mentioned that consumer spending slowdown and labor market conditions will be taken into consideration.
