By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
Live Trading NewsLive Trading NewsLive Trading News
  • Stocks
  • Forex
  • Gold
  • KNIGHTS
  • Luxury
  • Horse Racing
  • Trade Now
Search
Reading: The Fed Will Not Rise Rates, Crypto is the Safe Haven
Share
Live Trading NewsLive Trading News
  • Stocks
  • Forex
  • Gold
  • KNIGHTS
  • Luxury
  • Horse Racing
  • Trade Now
Search
  • Stocks
  • Forex
  • Gold
  • KNIGHTS
  • Luxury
  • Horse Racing
  • Trade Now
Follow US
© 2024 LiveTradingNews.com - All Rights Reserved.
Live Trading News > Blog > Crypto > Bitcoin > The Fed Will Not Rise Rates, Crypto is the Safe Haven
Bitcoin

The Fed Will Not Rise Rates, Crypto is the Safe Haven

Crypto King
Last updated: February 18, 2022 10:15 pm
Crypto King
Share
4 Min Read
SHARE

With high inflation hitting the US economy, it is time for the central bank to raise the benchmark borrowing rate, but there is no reason for a “big” early move, a top Federal Reserve official said Friday.

Instead, policymakers can “move steadily” to get the key lending rate off zero and back to more normal levels over the next year or more, New York Federal Reserve Bank President John Williams told reporters.

His comment downplayed expectations among many economists and investors that the Fed could move aggressively to raise interest rates by a half point in March to combat inflation, rather than its usual quarter-point increase.

“There’s no need to do something extra at the beginning of the process of liftoff,” Williams said in response to a question from AFP. “I don’t see any compelling argument to take a big step” to start the process.

US inflation has hit the highest rate in four decades, battering President Joe Biden’s popularity and hitting households and businesses in the world’s largest economy.

Williams acknowledged prices rose higher and lingered longer than he was expecting, and left the door open to more aggressive action if the situation demands it.

“What I’m trying to convey is that we’ll be moving in a series of steps” to get the policy rate up from zero to “more normal levels” of 2-2.5 percent.

The official, who serves as vice chair of the policy-setting Federal Open Market Committee (FOMC), said the central bank could “either slow down or move faster. But I don’t see the need to do that at the beginning.

His stance runs counter to others, like St. Louis Fed President James Bullard, who has called for the central bank to “front load” its rate increases, and would be open to hiking outside the regularly scheduled meetings.

– March hike ‘appropriate’ –

Williams, in a speech delivered virtually to New Jersey City University, noted that the Fed also will begin to reduce the massive bond holdings built up as part of the pandemic stimulus efforts.

That, combined with higher interest rates, will help bring inflation back down to around three percent by the end of the year, Williams predicted, adding that he is confident the economy will continue to recover.

Markets already were anticipating the first of several rate hikes will come at the March 15-16 FOMC meeting.

Like other central bankers and officials in the Biden administration, Williams attributed much of the inflation increase to pandemic-related issues, including supply and transportation snags and labor shortages.

While the rapid improvement in employment is “great news,” Williams said, “we have seen inflation rise to a level that’s far too high.”

“I expect it will be appropriate to raise the target range at our upcoming meeting in March,” he said, indicating it would be the first of several hikes.

“Once the interest rate increases are underway, the next step will be to start the process of steadily and predictably reducing our holdings of Treasury and mortgage-based securities,” Williams said.

The combined moves “should help bring demand closer to supply” and reduce price pressures.

“I am confident we will achieve a sustained, strong economy and inflation at our two percent longer-run goal,” he said, projecting the Fed’s preferred inflation measure will “drop back to around three percent” at the end of 2022 “before falling further next year as supply issues continue to recede.”

You Might Also Like

De-Dollarization Is Inevitable

US Bombs Iran: Escalation and Implications

USA Bombs Iran

Bitcoin Dip Is Your Opportunity

Eight Killed in Brazil Hot Air Balloon Crash

Sign Up For Daily Newsletter

Be keep up! Get the latest breaking news delivered straight to your inbox.

Subscribe our newsletter for latest news around the world. Let's stay updated!

By signing up, you agree to our Terms of Use and acknowledge the data practices in our Privacy Policy. You may unsubscribe at any time.
Share This Article
Facebook Twitter Copy Link Print
Share
By Crypto King
Follow:
Cryptocurrencies, Decentralized processes and the ever widening impact of Blockchain are going to have a major impact on the way things are done, who does them and who makes the money. Where there were once huge barriers to entry, the door is now open. Individuals can now access income from the type of business once reserved for Institutions, Governments and High Net-Worth Individuals. They can through Blockchain, DeFi and P2P protocols became bankers participating in income from trading, brokerage, settlements, fees, mortgages, finance, margin lending and a host of other financial services.
Previous Article Crypto: DeFi and Banks in the Blockchain
Next Article The NFT Companies to Buy Now


Latest News

Iran Rocked by 5.1-Magnitude Earthquake
Headline News June 20, 2025
Israel vs. Iran: Missiles, Military Hardware, and Personnel
Headline News Politics Shayne Heffernan June 20, 2025
Google Password Leak Update
AI Featured Headline News Most Popular Must Read Opinion Shayne Heffernan Shayne Heffernan Shayne Heffernan on Investments Stocks June 20, 2025
The Difference Between Wagyu, Kobe, and Matsusaka Beef
Headline News Must Read Politics June 19, 2025

Stay Connected

235.3kFollowersLike
69.1kFollowersFollow
11.6kFollowersPin
56.4kFollowersFollow
4.4kFollowersFollow
//

Stay informed with LiveTradingNews.com – your ultimate destination for timely and insightful updates on global markets, finance, and investment trends. Explore the latest news and analysis to empower your trading decisions.

Quick Link

  • About us
  • Advertise
  • Send us a tip!
  • Privacy Policy
  • Contact us

Top Categories

  • Knightsbridge Insights
  • Featured
  • Stocks
  • Shayne Heffernan
  • Lifestyle

Sign Up for Our Newsletter

Subscribe to our newsletter to get our newest articles instantly!

Subscribe our newsletter for latest news around the world. Let's stay updated!

Live Trading NewsLive Trading News
Follow US
© 2025 LiveTradingNews - For The Traders, By The Traders – All Right Reserved By Knightsbridge Group
Welcome Back!

Sign in to your account

Register Lost your password?