#PowellRemarks

Powell Slows Fed Tightening – What It Could Mean for Your Bitcoin Moves

Federal Reserve boss Jerome Powell just shared why they slowed down their plan to shrink the balance sheet last month. Basically, the Fed had been cutting back on the money they pumped into the system (this is called quantitative tightening), but in March, they eased up a bit. Some folks thought this meant the Fed was worried about running out of money in the system, but Powell said nope – “We think reserves are still abundant.”

The real reason? Something to do with the U.S. Treasury and the debt ceiling made it hard for the Fed to properly track how tightening was affecting things. So they hit the brakes a little to avoid any surprises. Powell added, “The slower we go, the smaller the balance sheet can get without disruptions.” Translation: better to go slow and steady than cause market hiccups.