Bitcoin Drops Below $22K as Powell Suggests Further Interest Rate Hikes
US Federal Reserve Chairman Jerome Powell Announces Possible Interest Rate Hike
The US Federal Reserve has announced that it may increase interest rates even further if the situation requires such drastic measures. This announcement was made by the organization’s Chairman, Jerome Powell, during his testimony to Congress regarding the central bank’s upcoming monetary plans.
The news caused an immediate reaction in the financial markets, with Bitcoin experiencing a price slump that drove it south by roughly $400 in minutes. This was unexpected, as most financial markets had calmed down in anticipation of Powell’s testimony.
During his speech, Powell suggested that the organization will likely increase the key interest rates more than previously expected. This is in contrast to what most experts believed, as the general assumption was that the Fed will not push the rates above 6%.
“The latest economic data have come in stronger than expected, which suggests that the ultimate level of the federal funds rate will be somewhat higher than previously expected,” Powell said.
The announcement has caused concern among investors, as higher interest rates could lead to a slowdown in economic growth. However, Powell emphasized that the Fed will continue to monitor the situation closely and adjust its policies accordingly.
“We will continue to monitor the economy and adjust our policies as necessary to achieve our objectives of maximum employment and price stability,” he said.
The announcement comes at a time when the US economy is showing signs of recovery from the COVID-19 pandemic. However, there are still concerns about inflation and the impact of rising interest rates on the stock market.
Investors will be closely watching the Fed’s next moves, as any further announcements could have a significant impact on the financial markets.