The time has come, BTC Even though we haven’t fully priced it in yet, great things are happening for cryptocurrencies. Powell gave a clear message that they will start discounts. Mt Gox refunds are almost complete. Germany sales are over and a suitable environment is being created for risk markets. Unless of course there is a third world war.
America to Cut Interest Rates
The market expectation for a long time was for a 100bp cut for this year. This is three months of good inflation and PCE data. Now, after the huge downward revisions on the employment front, the Fed needs to remember its second important task. The Fed has 2 tasks. One of them is price stability, the other is employment growth. Both tasks are equally important for the Fed. However, after the highest inflation figure of the last 40 years, price stability became a priority. A Prize Pool Worth 21 Million TL Awaits You from BinanceTR! Participating and winning has never been easier.. You can sign up to BinanceTR from this link. Get your first crypto!
Now that’s changing. With inflation below 3 percent, the Fed must now cut interest rates, which have been at their peak for more than a year. This is something that has been forced upon it to prevent further tightening from causing greater damage to the economy.
Powell’s Statements
Inflation has been significantly above target levels in the past three years. Powell He reminded that the steps they took were necessary. He also underlined that the primary focus of the Federal Open Market Committee during this period was to reduce inflation.
The important parts are as follows;
“Our restrictive monetary policy has helped restore the balance between aggregate supply and demand, easing inflationary pressures and keeping inflation expectations well anchored. Inflation is now much closer to our target, with prices rising by 2.5 percent over the past 12 months. After a pause earlier this year, progress toward our 2 percent target has resumed. I have increased confidence that inflation is on a sustainable path toward 2 percent.”
Fed He kept saying that after making a discount once, he would do his best to avoid increasing prices again, so he waited for discounts. Now they are announcing that a discount environment has been created where they will not have to increase prices again. This could mean new peaks for risk markets, including cryptocurrencies, due to expectations by the end of the year.
Disclaimer: The information contained in this article does not contain investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
