John Williams, president of the Federal Reserve Bank of New York, discussed recent inflation data and spoke about the impact on Bitcoin and other cryptocurrencies.
This week is a week of key data releases for Bitcoin and altcoins.
When the Producer Price Index (PPI) and Consumer Price Index (CPI) data for the United States were released, the positive data drove the price of Bitcoin and altcoins up.
Williams said that although the inflation data in April was positive, it was not enough for the Fed to lower interest rates at the moment.
Williams said that after several months of sluggishness, the April CPI data was good news, which could slow the rate of increase in interest rates. He emphasized that the current monetary policy is tight enough and in a good position.
The Fed member also pointed out that we don’t need to wait until the inflation rate reaches the 2% target exactly before considering a rate cut.
He believes that the inflation rate will be close to this target in the short term, but the Fed will not consider a rate cut until it is confirmed that the inflation rate can stabilize at around 2%.
The Fed will consider policy adjustments after inflation stabilizes, rather than waiting until the inflation rate fully reaches 2%.