After the recent announcements by the Fed, Bitcoin has seen an increase to $62,000. Concerns in risk markets have been rising as the U.S. economy moves away from a soft landing narrative. Despite the Fed's desire to decrease interest rates, they have shifted from a plan for a 75bp cut. Challenges in fighting inflation have become apparent based on the latest data.

Overview of Fed Statements

Statements by Fed member Collins have addressed the current situation. He has discussed the risks associated with initiating early interest rate cuts, contrary to the expected 150bp cut at the beginning of 2024. Market uncertainty now exists regarding even a 75bp cut. Key points from Collins include the need for demand to slow down for inflation to reach 2%, the ability of companies to absorb faster wage increases, risks of reducing interest rates prematurely, skepticism regarding the permanency of increased productivity, the moderately restrictive nature of monetary policy, the strength of the economy, and optimism about achieving 2% inflation within a reasonable timeframe.