Fed Chairman Powell He was making statements as the article was being prepared, and the president, who will not leave his seat until the end of his term, touched upon important details. We have already mentioned that the dreams of a potential process in which interest rates would be reduced quickly and in favor of the bulls were dashed. So what do Powell’s statements mean for cryptocurrencies?
Statements of the Fed President
Inflation data show that although the 2% target is not far from the target, the steady decline has stopped. Although members mentioned that the 2% target could be achieved in the next 2 years, this slow process led to the opinion that a maximum of 3 interest rate cuts could be made next year. This is below Fed members’ previous annual reduction expectations.
Powell Bitcoin (BTC) $96,937He says that is a rival of Gold, not the US dollar, and confirms it as digital gold.
The important highlights of Powell’s statements are as follows:
“Powell: Higher immigration is one reason why growth will be strong in 2023. We model, examine and evaluate tariff proposals (likely to come with Trump). Low survey response levels are likely to have increased volatility in forecasts of labor market data. The Fed is trying to be in the middle ground, where policy is less restrictive so inflation can fall but not hurt the labor market. The economy is in good shape and there is no reason why it cannot continue. Unemployment is still very low and we are making progress on inflation.
We acted very quickly regarding interest rates. I feel very good about where monetary policy is at. There is broad bipartisan support for an independent Fed; I don’t think there is a risk of losing it.
Bitcoin is just like gold, except it is digital. Bitcoin is used as a speculative asset; It is a rival of gold, not the US dollar.”
The Fed Beige Book was also published during the imposition and states are reporting modest price increases. Economic activity similarly increased.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that crypto currencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
