Development of cryptocurrency market will lead to discount rate hike by Fed

Baku. 14 December. REPORT.AZ/ The Federal Reserve System (Fed) tends to increase discount rate, to achieve that Fed will try to speed up the inflation by keeping oil price high and dollar rate low.

Analytical Group of Report states that if Fed manages to keep oil price at $ 55-65/barrel and major currency pair at the level of 1.15-1.20 USD/EUR, the US inflation is predicted to approach to 2-2.5% in the end of 2018 and the first quarter of 2019.The development of cryptocurrency market will also speed up the inflation. High income generated for the short time from the global cryptocurrency trading will increase the inflation rates in USA and in the world.

Analytical group of Report predicts that Fed will raise interest rate 4 times with 0.25 basis points each time and amid surge of inflation in 2019 Fed will double its measures to increase the interest rate to 0.5 basis points.