Examining the statements of the President of the Central Bank of America at the Jackson Hole meeting; Will interest rates rise again?

The comments of the head of the US central bank on Friday during the Jackson Hole meeting strengthened the speculations about the interest rate increase in this country for the next period or until the end of 2023. At the same time, some economists predict an early return of the Federal Reserve from contractionary policies.

To Report Crypto Potato Federal Reserve Chairman Jerome Powell spoke during the Jackson Hole meeting yesterday. According to experts, the result of Powell’s statements was the increase in the possibility of interest rate increases in this country.

In his speech, he once again emphasized the commitment of the Central Bank of America to bring the inflation in the United States to the level of 2%. Meanwhile, some economists say that it can be difficult for the Federal Reserve to achieve this inflation target in the United States.

Powell said at the Jackson Hole meeting:

2% has been and will be our inflation target. Reaching this level, however, requires going through a period of economic growth at lower rates than the current trend.

Powell says the central bank hasn’t gotten the results it wanted and the U.S. economy probably hasn’t calmed down as much as it should have.

Paul Krugman, the famous economist, published a note in the New York Times last week, in which he said that 2% inflation may create bad economic conditions in the United States, and therefore it is possible that the Federal Reserve will change its inflation target to 3%. .

The statistics of the “FedWatch tool” of the Chicago Stock Exchange, which is used to predict changes in interest rates in the United States, show that after this meeting, the chance of an interest rate increase in the next period, which is September 20 (September 29), has increased to 20%. Meanwhile, the chance of an interest rate increase until the end of 2023, according to “The Kobeissi Letter” analytical group, is currently estimated at 52%, which is the highest level of this index in the last 2 months.

In general, the beginning of the process of lowering the bank interest rate in the United States can lead to the entry of more funds into the digital currency market; According to the Federal Reserve officials, the event is not expected before June 2024.