#PowellRemarks – Why is the market so volatile?
The statements of the Fed Chair – Jerome Powell are always closely monitored by investors due to their significant impact on interest rate policy and global cash flow.
Hawkish: Persistent inflation, keeping interest rates high → Market declines, crypto likely to dump
Dovish: Inflation decreases, potential for interest rate cuts → Market increases, crypto surges
Strategy: Avoid holding high leverage positions before the speech. Wait for a clear reaction after 15–30 minutes to avoid fake outs.
Note on terminology: “Persistent inflation” (bad), “Disinflationary pressures” (good), “Data-dependent” (neutral).