🇺🇸 Summary of the Fed Chair's hearing before the US House of Representatives

- The US economy is still stable, not in recession, and inflation may be lower than expected. The Fed is ready to lower interest rates soon if the labor market weakens.

- The reason the Fed is not in a hurry to act is that both internal and external forecasts suggest inflation will rise again this year, partly due to the impact of new tariffs.

- Most policymakers support lowering interest rates by the end of the year. Currently, the Fed has more "room" to cut interest rates, unlike before when rates were near 0.

- Banks can still freely provide crypto-related services, as long as they ensure safety and soundness for the financial system. The Fed, on the other hand, is neither allowed nor wants to buy crypto.

In summary, Powell emphasized that the Fed needs more time to observe the impact of tariffs and gather data. The timeline for lowering interest rates is still aimed at the end of the year.

=> Forecasting an explosive alt season by the end of the year and then celebrating a warm and prosperous New Year, right everyone!? 🤣