Yesterday, the Fed announced that it did not cut the interest rates because inflation is still high.
However, the price of Bitcoin ended up reacting with a rise, partly due to what President Powell said yesterday in the press conference.
Fed: inflazione ancora elevata in USA
The latest data available, those relating to December, indicate rising inflation in the USA compared to the previous three months.
However, the Fed primarily uses core inflation data to make its decisions, rather than the highly volatile general inflation data.
In December, core inflation in the USA fell to 3.2%, but it remains well above the target della Fed.
Indeed, the reduction compared to the previous months was minimal, because from September to November it was fixed at 3.3%, while already in July and August it was at 3.2%.
In fact, therefore, it has been six months since core inflation in the USA stopped falling, and this is somewhat concerning to the Fed regarding the path taken to bring it back to 2%.
The Fed’s Rate Cut
The peak of recent years reached by the Fed’s interest rates was hit in July of last year, when they rose to 5.5%.
Since then, they have remained at that level, particularly high, until September, when the Fed reduced them by 50 basis points, bringing them to 5%.
At that point, it seemed that a path of rate decrease had been undertaken, which, however, has currently halted after the last cut in December, bringing them to 4.5%.
At this moment, the…