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Fed’s Jerome Powell Sends Essential Message to Crypto Investors: Details
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Federal Reserve Chairman Jerome Powell recently made statements that could have implications for the cryptocurrency market.
Monday, Powell declared that the central bank will not wait for inflation to reach 2% before cutting interest rates.
Powell, speaking at the Economic Club of Washington, D.C., cited the premise that central bank policy operates with “long and variable lags” to explain why the Fed would not wait for its goal to be achieved.
According to Powell, the Fed is trying to gain “greater confidence” that inflation will return to 2%.
Powell said at the opening of his speech that he did not intend to provide any signal about when the Fed would start lowering interest rates. The central bank will hold its next policy meeting at the end of July.
More Fed officials are expected to speak this week. Investors will be looking for the latest data on retail sales and import and export prices on Tuesday.
How cryptocurrencies reacted
The cryptocurrency market is seeing a mixed reaction amid profit-taking after a bullish start to the week. However, most cryptocurrencies remained in the green as investors weighed comments from the Federal Reserve Chairman. Jerome Powell on the economic outlook and interest rates.
A few cryptocurrencies and select meme coins are seeing significant gains. Dogwifhat (WIF) and Floki (FLOKI) are up 20.35% and 18.4%, respectively, in the past 24 hours. Frog-themed cryptocurrency PEPE is up 23% in the past 24 hours.
Meanwhile, Bitcoin rose 0.46% to $63,166 over the past 24 hours, hitting a near-one-month high of $65,025 today.
Fluctuating expectations of interest rate cuts in the United States have reduced demand for riskier assets in recent weeks, with Bitcoin previously falling to lows seen in February.
The recent statement from the Fed chairman, who raised the possibility of rate cuts, seems bullish for the cryptocurrency market.
About the author
Tom Wabold Olajide
Tomiwabold is a cryptocurrency analyst and an experienced technical analyst. He pays close attention to cryptocurrency research, conducting comprehensive price analysis and trading forecasts on estimated market trends. Tomiwabold holds a bachelor’s degree from the University of Lagos.