Federal Reserve Now Targets Inflation Above 2%, Bitcoin Breaks $11K

SquallLeonhart

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Quote from: stompix on September 28, 2020, 03:49:25 AM

By using logic, and not "that logic", you could easily check and see that an iPhone 6S which has a lot more specs than the first is still for sale new for 250$.
And, for just 100$ you can buy NOW a Nokia 1.3 with x4 the specs of the first iPhone. You're basically saying that if the trends change you need to have a 24 airbags car with all the drive assists and autopilot, at the same price as a car from the 20' that had only a cassette player and a fuel indicator.

So next time, rather than using an invented logic, use REAL logic!

"Logically" in a world where inflation is not a big problem, things wouldn't get increased in price not only with improvements for regular stuff as well. What you guys are failing to realize is that, yes there is new tech but even something milk increases in price, that is the main thing that makes iphone more expensive as well.

If milk goes from 2 dollars to 4 dollars, that means iphone going from 100 to 200 would be same logic, apply new found tech on that and suddenly you have more expensive stuff as well. If we didn't had one carton of milk increasing in the first place (milk is just example, put any unchanged item of past 30 years) we would have iphones cheaper as well.

Yes, I believe that whatever the price of a car today is, should be the price of a car in 2040, or at least go up as much as our salary. If my salary was 100k when first iphone came out and 200k now, I do not want to see iphone go from 100 to 1000.

Torque

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Quote from: Emitdama on September 29, 2020, 01:38:44 PM

There are tons of things that are horrible in fiat world but this is not one of them, 2% inflation is not as bad as you think it is.

Ummm, are you even following the latter part of this thread?

We're saying that the FED is lying, that the 2% inflation target is bullshit, because the real rate of inflation is a LOT higher than that, and has been for some time now.

Emitdama

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The funny thing is, when federal reserve's talk about 2% inflation we see this as a bad thing, I just saw a meme on reddit about how people who go crazy about 2% inflation as a very bad thing but willing to pay tens of thousands on a defi that is untested and totally unreliable.

If someone told you to put 10k on uniswap or polkadot or whatever on early days you would do that in a heartbeat (there has been thousands who did) but when there is only a 2% inflation you go crazy about it. Hell there are coins that promise 10000% of your investment per year in coin form, and you see that as a great thing to get early, but somehow regular finances are bad. There are tons of things that are horrible in fiat world but this is not one of them, 2% inflation is not as bad as you think it is.

Torque

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https://www.zerohedge.com/economics/inflation-already-here-fed-may-have-major-problem-its-hands

stompix

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Quote from: SquallLeonhart on September 26, 2020, 12:18:03 PM

The reason why bitcoin price increase is insane is because the technology that improved should also be the same in the price as well compared to today's prices. For example using your analogy the 128 mb memory and 4 gb storage was the highest in that time, and it was 500 dollars, the current high version has higher memory and a lot more storage but it is the high tech of today as well, which means it should be 500 dollar today as well, if in 10 years we have a lot better tech it should go up and it should be 500 dollar again.

A phone is a phone, no matter how high it gets, because time passes, and this means we should be reaching the better things with same money if there was no inflation, not because it is better tech. Better tech will continue to happen, by that logic there will be 10k+ dollar iphone, there shouldn't be if inflation is not high.

By using logic, and not "that logic", you could easily check and see that an iPhone 6S which has a lot more specs than the first is still for sale new for 250$.
And, for just 100$ you can buy NOW a Nokia 1.3 with x4 the specs of the first iPhone. You're basically saying that if the trends change you need to have a 24 airbags car with all the drive assists and autopilot, at the same price as a car from the 20' that had only a cassette player and a fuel indicator.

So next time, rather than using an invented logic, use REAL logic!

LUCKMCFLY

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This is a very subjective issue, because the FED is always injecting money generating inflation into the world economy and that is well above 2%, the fact that Bitcoin continues to rise will not generate any change, it is a totally inflationary vs deflationary economy.

The makeup of the numbers by the government and the Fed are impressive, the hegemony of the dollar is an advantage that gives supremacy above all to the United States.

adaseb

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Quote from: SquallLeonhart on September 26, 2020, 12:18:03 PM

The reason why bitcoin price increase is insane is because the technology that improved should also be the same in the price as well compared to today's prices. For example using your analogy the 128 mb memory and 4 gb storage was the highest in that time, and it was 500 dollars, the current high version has higher memory and a lot more storage but it is the high tech of today as well, which means it should be 500 dollar today as well, if in 10 years we have a lot better tech it should go up and it should be 500 dollar again.

A phone is a phone, no matter how high it gets, because time passes, and this means we should be reaching the better things with same money if there was no inflation, not because it is better tech. Better tech will continue to happen, by that logic there will be 10k+ dollar iphone, there shouldn't be if inflation is not high.

This doesn't really make much sense. The advance of technology has nothing to do with the inflation of financial markets. There is some law, Snell law of whatever is called and its basically normal to have computer increase computation every few years. However the price of the computers still increases slightly due to inflation. For example maybe 10 years ago you could buy a mid-tier i5 CPU for $200 and these days you can buy a mid-tier CPU for $300, and inflation is still taken into account.

But this has nothing to do with inflation. Sure an iPhone 1 cost maybe half of the latest iPhone but the newest iPhone is about 10x as fast, does that mean it needs to cost 10x as much? It would cost around $5000 for an iPhone XS which is not the case. This topic is about real inflation and how its so expensive to buy groceries or pay utilities and how wages haven't risen high enough and why the gap between the rich and poor is widening.

SquallLeonhart

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The reason why bitcoin price increase is insane is because the technology that improved should also be the same in the price as well compared to today's prices. For example using your analogy the 128 mb memory and 4 gb storage was the highest in that time, and it was 500 dollars, the current high version has higher memory and a lot more storage but it is the high tech of today as well, which means it should be 500 dollar today as well, if in 10 years we have a lot better tech it should go up and it should be 500 dollar again.

A phone is a phone, no matter how high it gets, because time passes, and this means we should be reaching the better things with same money if there was no inflation, not because it is better tech. Better tech will continue to happen, by that logic there will be 10k+ dollar iphone, there shouldn't be if inflation is not high.

STT

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Quote

instead put that money into interest and collect it which removes money from the market and makes it hard for economy to grow as well.

Money placed on deposits is used as capital by the banks for loans, its not wasted, unused or wasted while retained but that is narrative we might be receiving from current policy. Bank capital is normally required but in many western economies now the central bank is issuing whatever funds are required by the banks so that interest rates offered to small savers are tiny, they arent needed any more. Saving isnt a negative unless inflation is taken as a positive then you arrive where we are now, governments want people to exercise money as much as possible to stop any possibility of deflation. Similar kind of thing can happen in Bitcoin where if we get alot of circulation or monetary velocity it helps to support the overall valuation for the Bitcoin economy; main difference we have is no fractional reserves and a plain ledger.
ECB, FED or Bank of Japan cannot accept deflation occurring due to the size of the debts now held roughly about the size of world war two ending which was not a time for riches for most. Deflation would amplify the burden of debt and its probable cost with the possibility of interest cost ten times as much it could cause default. I respect one dynamic more then the brains of central banks which is natural dynamics, I just dont believe they can juggle natural factors greater then all of us long enough to balance the excessive debts and make safe the situation.
Failure isnt something to wish for and I dont think BTC can fix the problems of FIAT but it does at least offer some dry land if all of QE unwinds itself. This is where 100k for a Bitcoin becomes a reality but only with great negative backdrop as proviso, I hope the system can handle much greater traffic by that point

el kaka22

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Quote from: RealMalatesta on September 21, 2020, 01:02:06 PM

There are tons of nations that has done this so far, in my nation the inflation rate was high which caused the saving interest to be high as well while making everything more expensive. When you have huge interest rate people try to not use that money but instead put that money into interest and collect it which removes money from the market and makes it hard for economy to grow as well.

When you drop the interest rates to very low, that makes people use that money instead to make more money because they can't get interest that is one example, also on top of that when they spend that money to make more money on something, they usually put money into the market and when they do that it results with economy recovering as well. So, just dropping interest rates alone does improve a ton.

Yeah, federal reserve all by itself is a wrong place, it shouldn't even exist to begin with. They control the economy a lot more than they should, they have the right to change so many things when they want and it is not really acceptable to have a place that is filled with "economists" who are basically ex-wall street people to actually end up with ruling over countries economy.

Moreover, the current system needs them and that is why they can't be abolished but the reality is I can't deal with one organization focusing on interests, printing money, inflation and many more which changes everything for regular people, whatever they do hurts or helps public and they shouldn't have that type of power. This is why bitcoin is great, it is decentralized.

stompix

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Quote from: adaseb on September 18, 2020, 03:40:34 PM

Heck look at iPhone prices, the first iPhones were like $500 and now they are over $1000.

Would you pay now 500$ for a phone with 128MB memory, 4GB of storage a, 1400Mah battery, and an awesome 2MP camera? Guess not!
Comparing products that evolve and come with different stuff on it is meaningless, would you buy now a brand new car for 5000 knowing that it has one airbag and no power steering? Or a tv with only buttons and no remote?

We should stick to the basic stuff, mostly food which is not really that influenced by external things, like the price of oil for example.

Torque

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Quote from: adaseb on September 21, 2020, 10:41:02 PM

So employers I guess are happy that the government makes inflation 2%, so they can give their employees a 2% raise every year and most will be happy. However employers probably increase their costs by more than 2% to account for increased costs. Hence why people are buying real estate, bitcoin, stocks, etc. Because cash is becoming more and more useless as time goes on.

Yes but...many people in the U.S., even higher paid white collar workers, are no longer even getting a standard 2-3% raise per year. Many many people, family, friends, and colleagues I've talked to told me that standard raises (and bonuses) basically ended around the 2012-2013 time frame. Most have gone 1-3 years without a single raise. When a raise does come, it is usually closer to 2%. Then another 1-3 years go by with nothing.

That is why the music stopped in the U.S. in the mid 2010's, because wages started falling WAY WAY behind inflation (which is ~6-8% /year), so people just stopped buying the things they used to buy fairly regularly, like luxury items, new cars, fine clothes & jewelry, lavish trips, etc.

bitgolden

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We were going above 10.8k and then we are dropping under 10.5k I do not understand what to expect from crypto right now, things looking like they are doing alright as well but it also looks like it is not doing great neither, it is not something I am very knowledgeable about I suppose but I really want to learn why does it not move at all but also move so much at the same time.

As in it doesn't move at all in big manner, not go above 11k or even 12k price but at the same time not go below 10k neither that would be moving, but also it moves a lot because it does that 10.5k to 10.8k a million times, there is really no reason why it should be moving up and down like that so small. If anyone knows why it makes so much money small time but no move big time at all could explain the reason that would be great.

adaseb

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Quote from: buwaytress on September 19, 2020, 08:02:27 AM

Quote from: Torque on September 18, 2020, 12:59:56 PM

True asset inflation is already running at ~6-8%/year.

The Fed is full of shit. How they measure yearly inflation is a lie.

Yeah, if you live in Malaysia since the 1990s, where the government feels so proud to announce annual inflation every year at about 1%, but you see your coffee and meals price go up 10% every year, paying 2x as much in just less than 10 years, then you realize the silly money and economics games that all governments play to keep you less worried than you ought to be. Our faith lies in Bitcoin.

One reason why governments do this is because most people don't even know how inflation works exactly. And even less people know how the real inflation works. Basically my dad was given a raise every year which was like inflation + 1% or so. And he was happy. I told him you are getting ripped off. And he didn't understand. He looked at the bank stats and he assumed his pay rates were fair however I told him why are you paying double for heat now as compared to 10 years ago! Are you wages double? Probably not.

So employers I guess are happy that the government makes inflation 2%, so they can give their employees a 2% raise every year and most will be happy. However employers probably increase their costs by more than 2% to account for increased costs. Hence why people are buying real estate, bitcoin, stocks, etc. Because cash is becoming more and more useless as time goes on.

Torque

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Listen and learn the truth about the real inflation:

Inflation Reality: CPI vs ShadowStats & Chapwood Inflation Index

https://www.youtube.com/watch?v=8Vid6VbKHz0

RealMalatesta

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There are tons of nations that has done this so far, in my nation the inflation rate was high which caused the saving interest to be high as well while making everything more expensive. When you have huge interest rate people try to not use that money but instead put that money into interest and collect it which removes money from the market and makes it hard for economy to grow as well.

When you drop the interest rates to very low, that makes people use that money instead to make more money because they can't get interest that is one example, also on top of that when they spend that money to make more money on something, they usually put money into the market and when they do that it results with economy recovering as well. So, just dropping interest rates alone does improve a ton.

okala

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It seems this bull market is not over yet. I believe that bitcoin is now enjoying the adoption of the populace and the current trend seem real than the pump and dump that we have before.

sunsilk

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Quote from: Upgrade00 on September 18, 2020, 12:58:55 PM

Quote from: sunsilk on September 17, 2020, 10:14:10 PM

It could be that they can slow down the process of inflation by cutting off interest rates.

I should preface by saying I'm not an expert either, but, the correlation between inflation and interest rate is inverse, in very simple terms; the higher the interest rate, the lower the inflation rate, and vice versa. So, lowering the interest rate to near zero is meant to stimulate the economy and keep the inflation rate stable at near 2% or slightly higher. If it goes much higher than this levels, hyperinflation would set in.

The pandemic has caused lots of businesses to shutdown, leading to employment and hence a stagnation of money in circulation, to counter this, Central banks initiate policies such as lower interest rate and stimulus packages, people would be able to take out loans at a much lower interest and would have cash with which to stimulate the economy - this would encourage spending.
The Bank of England is considering a below zero or a negative interest rate from the current levels of about 0.1%.

This policy can also be used to reduce the money in circulation; during a booming period banks can set much higher interest rates - this would encourage saving

We should note that these policies has its negative effects, banks giving out loans at a loss would lead to deficits, leading to losses and declines in bank stocks.
Encouraging people to take loans would also lead to more bad loans and more defaults, further straining the banking sector.

This is a very insightful thought and made me realize the possible reason behind all of those cutting of interest rates. I'm contemplating after reading your comment how does the reduction of the interest rates work and I'd say that I appreciate it, thank you.

Quote from: BrewMaster on September 19, 2020, 09:30:53 AM

Quote from: sunsilk on September 17, 2020, 10:14:10 PM

Quote from: kolbalish on September 17, 2020, 01:26:04 PM

On average, officials don't expect 2% inflation until 2023.

They've just printed stimulus checks and then assuming that only 2% inflation by the next three years? I'm not an economy expert but with all of those injections that they've made, it's already that enough or even too much to project how big the inflation rate for the next years to come and could happen as early as it can be.

It could be that they can slow down the process of inflation by cutting off interest rates. But CMIIW, that it's an imminent thing to come after with all of those printed money.

i think most of it is only to keep the masses calm and try to keep the inflation rate of both this year and the next at a smaller percentage. otherwise with the way economy has been hurting over the past months along the crazy amount of money they keep printing we can expect a lot more inflation than 2% for this year alone which we've already started to see too, and a lot more for next year.

Yes, basically the inflation that we're about to see or whichever country we're residing will only experience this 2% or near to it as the beginning and there's more for the upcoming years until everything stabilizes and the economy's back and calm again.

beerlover

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First of all I do not believe that these two things were somehow connected, I don't know if you think that way or not but the main topic name suggests it without saying it directly. Bitcoin went up because bitcoin went up, mainly because people really believed that bitcoin didn't fall under 10k so that means it is not on a bear run so why not buy some because if it is not bear, that means bulls are still around which caused the price to go up.

Obviously not many people knew what federal reserves were aiming at, it wasn't news that created a big noise all around the world, it is something I am hearing here first and I probably wouldn't heard it neither if OP didn't made a topic about it, thanks for letting us know. However that also means millions of people didn't know while bitcoin was going up as well.

akram143

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Quote from: LFC_Bitcoin on September 18, 2020, 05:14:48 PM

It’s only a matter of time now until the whole system comes tumbling down. All of us here right now are lucky, even somebody buying their first BTC today is an early adopter. Traditional fiat currencies are creaking wrecks & they’re slowly filling with water. Get your money into BTC now before it’s too late.

Its never late to buy cryptos, especially bitcoin.

Inflation in my country reaches all time high in this 21st century and probably the real is yet to come, so people are moving to gold and bonds by selling stocks.Hope some of them will enter into cryptos as well.

BrewMaster

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Quote from: sunsilk on September 17, 2020, 10:14:10 PM

Quote from: kolbalish on September 17, 2020, 01:26:04 PM

On average, officials don't expect 2% inflation until 2023.

They've just printed stimulus checks and then assuming that only 2% inflation by the next three years? I'm not an economy expert but with all of those injections that they've made, it's already that enough or even too much to project how big the inflation rate for the next years to come and could happen as early as it can be.

It could be that they can slow down the process of inflation by cutting off interest rates. But CMIIW, that it's an imminent thing to come after with all of those printed money.

i think most of it is only to keep the masses calm and try to keep the inflation rate of both this year and the next at a smaller percentage. otherwise with the way economy has been hurting over the past months along the crazy amount of money they keep printing we can expect a lot more inflation than 2% for this year alone which we've already started to see too, and a lot more for next year.

buwaytress

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Quote from: Torque on September 18, 2020, 12:59:56 PM

True asset inflation is already running at ~6-8%/year.

The Fed is full of shit. How they measure yearly inflation is a lie.

Yeah, if you live in Malaysia since the 1990s, where the government feels so proud to announce annual inflation every year at about 1%, but you see your coffee and meals price go up 10% every year, paying 2x as much in just less than 10 years, then you realize the silly money and economics games that all governments play to keep you less worried than you ought to be. Our faith lies in Bitcoin.

el kaka22

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The regular inflation should always be a bit under 2% that is what we are thought, if there is zero inflation that means there is zero profits over time, there needs to be inflation in order to pay everyone more, and also get more money from everyone as well, if you do not increase the price of stuff, you can't pay people more and if you do not pay people more that means you are not going to find people since they will go to places they will get paid more.

At the end of the day, have a small like 1-1.5 inflation and that is fine, the moment you have like 8% or even more (like some other countries) suddenly your money worths almost nothing and you are basically poor just because you are not getting inflation worth salary increase and that causes people to get significantly poorer.

Torque

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Quote from: exstasie on September 18, 2020, 02:30:15 PM

Quote from: Torque on September 18, 2020, 12:59:56 PM

True asset inflation is already running at ~6-8%/year.

The Fed is full of shit. How they measure yearly inflation is a lie.

What is that based on, inflation of asset prices? Which assets do you look at? I've always wanted to find a way to plot dollar inflation against assets as an alternative to CPI but.......too much work.

Take a look at Shadow Stats:

http://www.shadowstats.com/alternate_data/inflation-charts
http://www.shadowstats.com/article/no-438-public-comment-on-inflation-measurement

LFC_Bitcoin

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It’s only a matter of time now until the whole system comes tumbling down. All of us here right now are lucky, even somebody buying their first BTC today is an early adopter. Traditional fiat currencies are creaking wrecks & they’re slowly filling with water. Get your money into BTC now before it’s too late.

exstasie

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Quote from: adaseb on September 18, 2020, 03:40:34 PM

There is some index called the "Burrito index" and if you search for it on Google it represents a good value of inflation because it uses the average burrito prices throughout the years. Its accurate because it takes into account the cost of the restaurant serving the burrito, the cost of the ingredients, etc. However I am not sure its being updated anymore.

The trouble with the burrito index is the lack of historical, primary sources for the data. The only people who cite this metric are Austrian economists, gold bugs, and people like that. I don't exactly trust their data, which never shows any primary sources. We just have to take their word for it. If we do, then real inflation is 4-5x CPI. I haven't seen any updates since 2018 which leads me to think the burrito index may not currently suit their narrative.

I have no doubt real inflation is higher than CPI. I just don't know how much or exactly how to measure it. The BLS weighs certain things too heavily. For example, technological advances have made goods like televisions significantly cheaper, but given how often consumers buy televisions vs. how often they pay their rent or healthcare expenses, goods like this are weighed way too heavily. This hides exactly how much purchasing power is being eroded by rising housing and healthcare costs.

It would be nice to develop a more robust model for inflation, but it would take an awful lot of work and immense data collection and verification, something which armchair economists on the internet aren't accustomed to doing.

adaseb

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Yes inflation is not only going to be 2% a year. Going back 10 years or so, besides gasoline it seems everything has pretty much doubled in price. I remember going to the grocery store and usually spending $100 for weekly food. And now its pretty much double that. Same with heating bills, electricity, insurance, etc. Heck look at iPhone prices, the first iPhones were like $500 and now they are over $1000.

There is some index called the "Burrito index" and if you search for it on Google it represents a good value of inflation because it uses the average burrito prices throughout the years. Its accurate because it takes into account the cost of the restaurant serving the burrito, the cost of the ingredients, etc. However I am not sure its being updated anymore.

exstasie

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Quote from: Torque on September 18, 2020, 12:59:56 PM

True asset inflation is already running at ~6-8%/year.

The Fed is full of shit. How they measure yearly inflation is a lie.

What is that based on, inflation of asset prices? Which assets do you look at? I've always wanted to find a way to plot dollar inflation against assets as an alternative to CPI but.......too much work.

STT

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The statistics tactics of government include adjusted data which means if the price rises 5% one year they may adjust it to 1% and say the product has improved and so is justified in its price rise. I dont know how they can do this with a ton of butter because its literally the same but I suppose it mostly reflecting larger houses now they were previously built in decades past or the most obvious would be technology development or cars being more powerful etc. Without a doubt Dollar will lose more then 2% of its value a year because they have printed more new dollars in 2020 then existed total in 2009, the biggest difference for why that doesnt immediately impact prices would be the circulation of dollars around the world not just one economy and also the large amount of debt built up that contains dollar value.
Bitcoin is entirely different to Dollar but does have an expanding circulatory amount while within a defined total amount, its likely BTC price rises because of limited supply.

Torque

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True asset inflation is already running at ~6-8%/year.

The Fed is full of shit. How they measure yearly inflation is a lie.

Upgrade00

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Quote from: sunsilk on September 17, 2020, 10:14:10 PM

It could be that they can slow down the process of inflation by cutting off interest rates.

I should preface by saying I'm not an expert either, but, the correlation between inflation and interest rate is inverse, in very simple terms; the higher the interest rate, the lower the inflation rate, and vice versa. So, lowering the interest rate to near zero is meant to stimulate the economy and keep the inflation rate stable at near 2% or slightly higher. If it goes much higher than this levels, hyperinflation would set in.

The pandemic has caused lots of businesses to shutdown, leading to employment and hence a stagnation of money in circulation, to counter this, Central banks initiate policies such as lower interest rate and stimulus packages, people would be able to take out loans at a much lower interest and would have cash with which to stimulate the economy - this would encourage spending.
The Bank of England is considering a below zero or a negative interest rate from the current levels of about 0.1%.

This policy can also be used to reduce the money in circulation; during a booming period banks can set much higher interest rates - this would encourage saving

We should note that these policies has its negative effects, banks giving out loans at a loss would lead to deficits, leading to losses and declines in bank stocks.
Encouraging people to take loans would also lead to more bad loans and more defaults, further straining the banking sector.

Quote from: sunsilk on September 17, 2020, 10:14:10 PM

But CMIIW, that it's an imminent thing to come after with all of those printed money.

I would assume the effect of printed money would be felt further down the road.

slaman29

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Bitcoin looks like it's looking at 11k as resistance yet again, so I'm sure a lot of people are concerned and now moving more and more capital to ETH (to play with Defi of course) but I have a really strong suspicion that a huge move is coming in the months leading up to US elections so crypto is going to move as big as USD. Down or up we have to find out soon, stay safe people.

sunsilk

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Quote from: kolbalish on September 17, 2020, 01:26:04 PM

On average, officials don't expect 2% inflation until 2023.

They've just printed stimulus checks and then assuming that only 2% inflation by the next three years? I'm not an economy expert but with all of those injections that they've made, it's already that enough or even too much to project how big the inflation rate for the next years to come and could happen as early as it can be.

It could be that they can slow down the process of inflation by cutting off interest rates. But CMIIW, that it's an imminent thing to come after with all of those printed money.

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Federal Reserve officials said Wednesday they would hold U.S. interest rates at close to zero and work to push inflation above 2% “for some time.”

Federal Open Market Committee keeps interest rates unchanged close to zero, according to its statement.
Panel agrees to maintain accommodative monetary policy until inflation climbs above 2% "for some time."
The central bank will increase holdings of U.S. Treasury securities and mortgage-backed securities "at least at the current pace to sustain smooth market functioning and help foster accommodative financial conditions."
Projection materials released with the statement show officials, on average, expect rates to remain close to zero through 2023.
On average, officials don't expect 2% inflation until 2023.
Robert Kaplan, president of the Federal Reserve Bank of Dallas and a voting member of the panel, voted against the plan. He "prefers that the Committee retain greater policy rate flexibility."
Neal Kashkari, president of the Federal Reserve Bank of Minneapolis, also cast a dissenting vote. He prefers that interest rates stay on hold "until core inflation has reached 2% on a sustained basis," according to the statement.
Economists weren't expecting Fed officials to make any changes to U.S. interest rates – which in March were cut close to zero on an emergency basis – as the devastating economic toll of the coronavirus started to become clear.
Last month, Fed Chair Jerome Powell said in a speech that officials plan to let inflation rise above 2% and stay there for a while to keep borrowing conditions easy for a longer time and allow the economy to heal.
“The Fed kind of kicked the door open at their last meeting by indicating a more aggressive approach to inflation,” Mati Greenspan, founder of the cryptocurrency and foreign-exchange firm Quantum Economics, told subscribers in an email on Tuesday, a day before the Fed announcement. “Of course, now that they have everyone’s attention, followup will be critical.”
Bitcoin’s price was trading at around $11,022.90 at press time, up 2.4% in the past 24 hours. The price moved temporarily to $11,071.33 right after the Fed’s release.
The S&P 500 Index was up 0.35%.

Reference- https://www.coindesk.com/federal-reserve-fomc-september-jerome-powell-bitcoin?amp=1

Topic: Federal Reserve Now Targets Inflation Above 2%, Bitcoin Breaks $11K (Read 407 times)