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Will the Federal Reserve Implement Further Tightening Policies?

Published 12/10/2023, 04:17 PM
Updated 12/10/2023, 04:45 PM
Will the Federal Reserve Implement Further Tightening Policies?
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  • The crypto community anticipates the Fed Reserve to keep the interest rate unchanged at 5.25-5.50%.
  • As per Powell’s words, the Fed would not tighten policies if the US CPI rate falls at 3% or below.
  • Predictions suggest that the CPI rate would result in the end of interest hikes.

The crypto community is anticipating a volatile week ahead considering two catalytic events, the US CPI Report and the FOMC meeting. While the US Consumer Price Inflation report for November will be issued on Tuesday, the rate is expected to impact the Federal Reserve’s decision on interest rates.

Investors have been speculating about a relaxation in the Fed’s interest rate following Fed Chair Jerome Powell’s hints on interest rate cuts depending on the inflation rate. Previously, in a speech, Powell asserted that the interest rates would be reduced if the inflation rate descends “solidly back” to 2%. Adding that the Fed is “prepared to tighten policy further if it becomes appropriate to do so,” Powell cited,

“Inflation is still running well above target, but it’s moving in the right direction. So we think the right thing to be doing now is to be moving carefu…

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