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The broader crypto market losses earlier gains as U.S. Federal Reserve Bank of New York President John Williams agreed that Fed officials forecast rates in a range between 5 and 5.25% for the year 2023 is still reasonable.
Bitcoin price fell over 2% after the comment by John Williams and the BTC price is currently trading at $22,795.
US Fed President John Williams Peak Rate Forecasts of 5.25%
Federal Reserve Bank of New York President John Williams on February 8 said financial conditions look roughly in line with the likely outlook for monetary policy. The U.S. Federal Reserve looks to bring the inflation target to 2%.
“My view is that still seems a very reasonable view of what we’ll need to do this year in order to get supply and demand in balance and bring inflation down,” said during a moderated discussion with the Wall Street Journal in New York.
U.S. Fed officials forecasted a rate hike of up to 5.1% by the end of 2023. However, he asserts forecast rates in a range between 5-5.25% by most officials is “still a reasonable view.”
The U.S. Fed raised interest rates by 25 bps to a range of 4.5% to 4.75% last week amid cooling inflation and strong jobs data. Williams believes further rate hikes would depend on incoming data. Also, the Fed pivot is out of focus until now as inflation needs to drop more.
Crypto Market Resonates Lower
Bitcoin price fell over 2% from the day high of $23.3K to $22.7K. The price is currently trading at $22,830. The U.S. Dollar Index (DXY) jumps higher to 103.50 as the Fed is likely to continue raising interest rates this year.
The broader crypto market followed suit and altcoins such as Ethereum, Dogecoin, Cardano, Shiba Inu, and others also fell over 2%. Ethereum price trades at $1,633, down 2% from the 24-hour high of $1,688.
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