🇺🇸 Powell: rates are currently on pause, but why are the markets soaring?

The head of the Fed spoke before Congress and gave the market a soft signal: inflation is slowing, the economy is stable, and rates may be lowered later this year - if trends continue.

Key points from Powell's speech:

🔻 Inflation and tariffs:

Tariffs may drive up prices, but the Fed will not respond to isolated spikes. This means that plans to lower rates will not be disrupted.

🪙 On the rate:

There will be no immediate reaction, but a reduction is possible with easing inflation, a decrease in new job creation, and if tariffs impact the economy.

📊 Economy:

• There is no recession; the economy is growing moderately and steadily.

• Treasury yields are under pressure.

⛏️ Crypto:

• Banks can work with crypto companies if they comply with regulations.

• The Fed does not plan to intervene - and this is positive.

🔍 What the market thinks:

• Easing of Fed policy is becoming increasingly likely in the fall.

• Treasury yields are declining along with the rate → interest in riskier assets is rising.

• A weaker dollar = bullish signal for BTC and commodities.

📈 Conclusion:

Powell made it clear: the course is towards a soft landing.