JeromePowell

Federal Reserve Chair Jerome Powell’s speech this week sent brief shockwaves through the markets. Powell admitted that the “balance of risks has shifted” toward higher inflation and weaker employment, leading the central bank to its latest rate cut. Yet his cautious tone raised a question: are markets heading into a period of uncertainty, or is this just a healthy correction?

What Powell Actually Said
At his September 23 economic address, Powell stressed that the decision to adjust rates was meant to balance emerging risks. The Fed Chair said:

“In recent months, it has become clear that the balance of risks has shifted, which led us last week to bring our policy stance closer to neutral.”
At the same time, he warned that the future path of inflation remains uncertain and that the Fed must “carefully balance” the situation:

“Uncertainty about the path of inflation remains high. We will carefully assess and manage the risk of higher and more persistent inflation.”
Markets immediately reacted—Bitcoin [BTC] briefly dipped to $111,000. Just hours later, however, it recovered above $112,000, while altcoins showed mixed performance.

Analysts: Caution Now, Optimism Later
According to Matt Mena, crypto strategist at 21Shares, Powell’s “wait-and-see” strategy could bring more volatility around the release of key macroeconomic data. “With tight valuations and elevated leverage, markets could continue to trade with sharp swings in response to incoming data,” Mena warned.
Special attention is now on the jobless claims report (September 25) and the Personal Consumption Expenditures (PCE) inflation data due Friday.
Shawn Young, chief analyst at MEXC exchange, added that markets are already showing caution ahead of these releases. “It could lead to further liquidations,” he noted, but emphasized that such shakeouts are often necessary for a healthy recovery—especially after the recent $1.7 billion wipeout.
Mena echoed this medium-term optimism: “Considering the stir caused by the Fed’s September rate cut and the expectation of two more cuts by year-end—one with a 91% probability in October—this looks more like a healthy recalibration than the start of a downtrend.”

An Optimistic Note from Wall Street
Tom Lee, CIO of Fundstrat, also struck an upbeat tone. In his view, Powell’s stance is not a “sinister signal” for market valuations, whether in equities or crypto. Instead, it suggests the Fed is keeping flexibility on the table.
Meanwhile, Bitcoin is holding above $112,000, with analysts expecting a potential test of the $117,000 level. Young cautioned, however, that a sustained drop below $112,000 could drag BTC down to $108,000.

Conclusion
Short-term caution may dominate as investors watch every piece of macroeconomic data. But in the medium term, sentiment remains largely optimistic—many experts see Powell’s message as a reset and opportunity, not a threat.

#bitcoin , #CryptoMarkets , #JeromePowell , #BTC , #FederalReserve

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The Federal Reserve, led by Chair Jerome Powell, has expressed caution regarding inflation uncertainty, which is influencing expectations for future rate cuts.
This stance is impacting the cryptocurrency market, particularly Bitcoin, which dropped below $113,000 following Powell's speech. The Fed's cautious approach aims to balance managing inflation and preventing labor market weakness.

🌬️Key Points from Powell Stance:-
🔘Inflation Uncertainty:
Powell highlighted the challenges in predicting inflation trends, citing the impact of tariffs and other economic factors.
🔘Rate Cuts:
The Fed recently cut its benchmark interest rate by 25 basis points, with potential for further cuts in 2025, although the path forward is uncertain.
🔘Dual Mandate:
Powell emphasized the Fed's dual goals of maintaining maximum employment and price stability, noting that the current situation presents "no risk-free paths".
🔘Economic Forecasts:
Fed officials forecast core inflation to range between 3.1% and 3.2% in 2025, with downside risks to employment and upside risks to inflation.

🌬️Market Impact:-
🔘Cryptocurrency:
Bitcoin's value dropped in response to Powell's comments, reflecting investor sensitivity to monetary policy shifts.
🔘Stock Market:
The S&P 500 and Nasdaq indices showed minor gains, with the S&P 500 up 0.11% and Nasdaq up 0.13%.

🌬️Future Outlook:-
The Fed's cautious stance suggests a delicate balance between supporting economic growth and controlling inflation. Investors will closely watch future economic indicators and Fed decisions for further guidance.
#FederalReserve #JeromePowell #RateCuts #StockMarket #MacroImpact
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