Recently, the FED announced its interest rate decision and a partial relief was seen in the markets.
At the beginning of the year, there was an expectation that the FED would increase by 50 basis points in the first stage, and while the markets were pricing this, sharp decreases were experienced in January and February.
However, the eruption of the Russia and Ukraine crisis in this process brought interest rate expectations to 25 basis points. The interest rate data, which came in line with the expectations this week, caused an upward acceleration in Bitcoin and US stock markets.
FED Member Şahin Made Statements
Speaking to CNBC recently, FED member Christopher Waller made important statements.
Stating that there was only a 25 basis point increase this month due to the tension between Russia and Ukraine, Waller said that the FED may be more aggressive in the upcoming meetings.
Stating that a 50 basis point rate hike could be made in one or more meetings to rein in inflation, Waller said:
“I prefer to go front-loading in interest rate hikes. If we want to have an impact on inflation this year and next year, we need to increase it further. In this sense, we can raise 50 basis points in one or more meetings in order to raise front-loaded interest rates.”
Defending that the FED should increase interest rates faster, the member said that interest rates should be in the range of 2-2.25% at the end of the year.
Powell Answered “I Don’t Know” To This Question
Powell, who was caught on camera after the interest rate decision on Wednesday, was asked whether they would increase front-loaded interest rates, and Powell replied “I don’t know” to this question.
Will you make a front-loading rate increase at the next meetings?
Powell: I don’t know. I am not deciding this alone.
— Bitcoin System (@bitcoinsystem) March 16, 2022
FED member Christopher Waller described Bitcoin as digital gold in an interview he attended last month.