Following the Federal Reserve's recent announcements, the price of Bitcoin has surged to $62,000. As the US economy shifts away from a soft landing scenario, risk markets are experiencing growing uncertainty.

Despite the Federal Reserve's intention to reduce interest rates, it has moved away from a 75bp cut target. The latest inflation data highlights the significant challenges the Federal Reserve faces in its efforts to combat inflation.

Susan M. Collins, a member of the Federal Reserve, has made statements on the current situation. Collins has tempered expectations by emphasizing the risks of initiating interest rate cuts too early. While a 150bp rate cut was anticipated at the beginning of 2024, markets are no longer confident in a 75bp cut.

Key points from Collins' statements include the need for demand to slow down to achieve 2% inflation, the unsurprising decline in inflation, and the ability of companies to absorb faster wage increases.

Collins also highlighted the risks of early interest rate reductions, the non-permanent nature of productivity increases, and the moderate restrictiveness of monetary policy. Despite these challenges, Collins expressed optimism that the Federal Reserve can achieve 2% inflation within a reasonable timeframe.