Former officials of the Federal Reserve predict rising inflation and unemployment, potentially complicating future interest rate decisions.
Inflation and Unemployment Predictions
According to insights from Jon Hilsenrath, inflation rates are predicted to reach 2.7% in 2025 and 2.5% in 2026. This reflects an upward revision from previous Federal Reserve forecasts, which may complicate decision-making regarding interest rates. Unemployment is also expected to rise to 5% or higher.
Impact on Cryptocurrency Markets
The anticipated increase in inflation and unemployment could lead to volatility in cryptocurrency markets. Former Fed officials emphasize that the Fed's strategy is focused on maintaining long-term stability despite the current forecasts.
Current Bitcoin Valuation
Currently, Bitcoin (BTC) is valued at $107,387.36, with a market cap of $2.13 trillion. Despite a recent 1.02% daily increase, BTC's price has declined by 1.95% over the week, potentially indicating sensitivity to economic forecasts.
The predictions of rising inflation and unemployment in the US raise questions about the future economic stability of the country and may influence both traditional and cryptocurrency markets.
