Fed Interest Rate Hike Looms, Cryptocurrency Market in Jeopardy

The Federal Reserve is preparing to raise interest rates in September if inflation exceeds expectations. According to Federal Reserve Chair Kevin Warsh, higher interest rates could have a negative impact on the cryptocurrency market.

Inflation has been above the Fed's 2% target, and although it has decreased slightly in recent months, there are concerns that it may rise again due to factors such as the US-Iran conflict and President Trump's tariff policies. Higher oil prices often lead to higher Consumer Price Index (CPI) figures, which could push inflation numbers even higher.

The Core Personal Consumption Expenditures (PCE), a key indicator of inflation used by the Federal Open Market Committee (FOMC), shows that core PCE inflation in June was 3.33%, and may rise to 3.36% in July.