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Federal Reserve Considers Delaying Target Interest Rate Recovery

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On February 21, according to the Bitlinex Alpha report, data showed that the Federal Reserve may raise interest rates by more than 25 basis points in the futur…

Federal Reserve Considers Delaying Target Interest Rate Recovery

On February 21, according to the Bitlinex Alpha report, data showed that the Federal Reserve may raise interest rates by more than 25 basis points in the future. Inflation intensified in January this year. Although the overall CPI fell year-on-year, some categories of consumer spending showed that inflation continued. All these factors together, the Federal Reserve may delay the recovery of the target interest rate of 2%.

Bitfinex Alpha: In the fluctuation of Bitcoin, inflation rises again

Interpretation of the news:


The Bitlinex Alpha report revealed that the Federal Reserve is contemplating a possible delay in the recovery of the target interest rate to 2%. This is following data that showed inflation intensified in January 2021. Although the overall consumer price index (CPI) fell year-on-year, some consumer spending categories still recorded inflation.

The Federal Reserve has had a target interest rate of 2% for some years. The interest rate influences lending rates and is a vital tool in stabilizing the economy. However, raising the interest rate may also have the opposite effect, as high interest rates may temper economic activity. Lately, inflation has been a significant concern, as it tends to reduce the purchasing power of consumers and can wreak havoc on financial systems.

The report suggests that the Federal Reserve may delay the target interest rate recovery by more than 25 basis points. In other words, the interest rate may rise slower than previously anticipated. This may be a strategic move to allow inflation to stabilize, enabling the economy to grow at a steady pace. Delaying the interest rate recovery may reduce the pressure on borrowers and lessen the risk of a possible recession.

It remains to be seen what the Federal Reserve’s decision will be. Nevertheless, it is an indication of the Federal Reserve’s cautious approach as it evaluates different options to stimulate economic growth while managing inflationary pressures. If the Federal Reserve delays the target interest rate recovery, it may offer an opportunity for investors and borrowers to benefit from lower interest rates for longer.

In conclusion, the Bitlinex Alpha report indicates that the Federal Reserve may delay the target interest rate recovery. This is in response to inflation, which continues to be a challenge for policymakers as they seek ways to stimulate economic growth. While the decision is yet to be made, a delay in the recovery of the target interest rate may present an opportunity for investors and borrowers to benefit from lower interest rates for an extended period.

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