President of the Fed reveals that they consider another increase of half a percentage point on interest rates – DiarioBitcoin

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President of the Fed reveals that they consider another increase of half a percentage point on interest rates - DiarioBitcoin For Angel Di Matteo @shadowargel

According to Powell, the FED has this on the table and plans to discuss it at the next meeting of the Federal Committee from Open market, which will take place next May.

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The president of the US Federal Reserve (FED)Jerome Powell, indicated today that the agency would be considering raising interest rates even more, for which he states that the possibility of increasing them again by 0.5 percentage points or 50 basis points is on the table.

Interest rates could go up

This was revealed by Powell during a presentation today before the International Monetary Fund (IMF)where he assured that the new increase in interest rates is a measure that will be debated for the next meeting of the Federal Open Market Committee (FOMC), which will take place next May. Let us bear in mind that this measure is included in the plans of the FED to address rising inflation in the US economy, which stands at 8.5% and is set to become the highest in the last 40 years.

In this regard, Powell commented:

“I would say there will be 50 basis points on the table for the May meeting… We are really committed to using our tools to bring inflation back to 2%.”

Keep in mind that interest rates remained close to zero until last March, at which time the first such increase of about 25 basis points (0.25 percentage points) since the pandemic began took effect. COVID-19.

The goal is to reduce inflation.

Considered by some as aggressive and by others very necessary, the measures and plans of the FED They aim to address the growing inflation that is taking its toll on the local economy, which is already making itself felt in the price of certain basic products and services.

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In this regard, Powell indicated that this and other measures are “absolutely essential to restore price stability.” However, the manager of the FED He is not sure if this 8.5% is the highest inflationary peak that is going to be seen for now, but he proposes not to count on it but to wait and see the effect that this and other measures can have:

“We’re really going to raise rates and quickly get to levels that are more neutral and then really tight … if that’s appropriate once we get there.”

Markets go down

Although the markets were already falling for this April 21, Powell’s announcement does not seem to have had a positive effect to reverse or placate said trend.

At the time of publication, indices such as NASDAQ, Dow Jones and S&P500 they score downward with falls between 1% and 2%. For its part, the cryptocurrency market also seems to follow the downward trend seen since this noon, with exponents such as bitcoin, ethereum and a good part of the main cryptocurrencies with falls of up to 4% in the last 24 hours.


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Source: CoinDesk

Angel Di Matteo version / DailyBitcoin

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