BTC Tumbles to $26.9K on Hawkish Statement by US Federal Reserve Chief

BTC Tumbles to $26.9K on Hawkish Statement by US Federal Reserve Chief

TEHRAN (Tasnim) – Bitcoin's (BTC) price remained flat at around $27,200 in the minutes in the wake of the central bank’s announcement but later tumbled some 1% to $26,900 as the Fed chair said the central bank will do more rate hikes if the economy remains stronger than expected.

Jerome Powell also said that the majority of Fed members believe "one more rate hike is more likely than not appropriate" to reach the Fed's goal during the remaining two Federal Open Market Committee (FOMC) meetings.

He also acknowledged that the recent trend in inflation is going in the right direction, saying that the last three months' readings were "very, very good."

Fed officials also projected keeping interest rates higher for next year at around 5.1%, a significant jump in expectations compared to 4.3% in the June prediction. They also see stronger economic growth for this year, expecting a 2.1% real GDP increase versus a 1% forecast in June, reported.

"In determining the extent of additional policy firming that may be appropriate to return inflation to 2% over time, the Committee will take into account the cumulative tightening of monetary policy, the lags with which monetary policy affects economic activity and inflation, and economic and financial developments," the Fed statement reads.

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