The US Federal Reserve’s game plan for the future includes short-term interest rates from 0% to 0.25%, as set by the Fed leadership at the September 15th and 16th meeting.
The independent agency plans to keep interest rates low to increase inflation, according to a CNBC report released on September 16. News like this sheds light on Bitcoin as a store of value. Blockchain-based currencies are largely immune to such measures as they are protected from inflation with a permanent cap of 21 million coins.
Most Fed members expect interest rates to remain close to 0% over the next three years, CNBC reports. The board said it is targeting inflation above 2%.
These measures could lead to a drop in the value of the dollar amid the central bank’s attempts to repair the country’s sinking economic ship, which has been shed by the continuing waves of the pandemic.
In recent years, Bitcoin has cemented its position as a store of value, theoretically away from traditional market rates and government oversight. Traditional giants like MicroStrategies and Paul Tudor Jones have recently raised the currency by joining the ecosystem, although the technology has yet to gain full approval.