Jerome Powell's Statements and Their Impact on the Market
Here's the summary of today's Federal Reserve meeting
- The Fed's position on cutting interest rates
Powell confirmed that the US central bank is "in no rush" to cut short-term interest rates, pointing to the strength of the US economy and the low unemployment rate, despite inflation remaining above the target (2%). He explained that rushing to cut interest rates could hinder progress in combating inflation, while delaying could weaken economic growth.
- Impact on Bitcoin: These statements led to a rapid decline in the price of Bitcoin from $97,000 to less than $95,000 within hours, before it rose again to $96,000 with the closing of US markets. Other coins such as Ethereum (-3.34%) and Dogecoin (-1.87%) also declined
- Conclusion
Jerome Powell's remarks today have created an environment of caution in the crypto market, with investors focused on upcoming inflation data and monetary policy details. While the proposed regulations could stabilize the market in the long term, short-term volatility remains tied to the Fed's response to economic indicators.