largest cryptocurrency Bitcoin(BTC)It is stuck in the $19 thousand-20 thousand range. Macroeconomic market and interest rate increases determine the value of Bitcoin. Negative market sentiments are stagnating Bitcoin price action.
Former US Treasury Secretary Supports Rate Increase
The US Federal Reserve maintains its hawkish stance to reduce the inflation level in the country. However, risks to global financial stability challenge the Fed’s determination.
Former Treasury Secretary Lawrence Summerswants the Fed not to compromise on its hawkish monetary policy.
Many Wall Street Banks state that inflation levels in the country have already reached their peak. Therefore, he finds it unnecessary for the central bank to increase interest rates aggressively. Experts also blame the Fed for a possible recession.
The United Nations is asking central banks around the world to abandon their aggressive monetary restraints.
Similarly, the World Bank states that the global economy will face a major recession in 2023.
The former US treasury secretary believes the Fed must deliver on its promises to ensure inflation returns to normal.
Lawrence Summers also wants the Federal Reserve to prioritize inflation over financial stability. According to him, the Fed can fight a recession after successfully controlling inflation.
However, it is not yet known how the FED plans to fight the recession (stagflation).
Bitcoin, on the other hand, was trading at $19,450 at the time of this writing.
*Not investment advice.
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