Recently, Jerome Powell presented the Federal Reserve's stance on interest rates and inflation, which garnered public attention.
Jerome Powell's Speech
In his recent speech, Jerome Powell clearly outlined the Fed’s position regarding rates and inflation. Despite Donald Trump’s calls for lower interest rates, Powell believes such decisions would be folly under current economic conditions. He points out that tariffs are inflationary and employment remains strong.
U.S. Inflation Data
According to recent data, inflation metrics in the U.S. have shown an increase. The Personal Consumption Expenditures (PCE) index rose by 2.8%, slightly above the anticipated 2.7%. The overall PCE also increased to 2.6%, exceeding the expected 2.5%. This indicates that the Fed is unlikely to lower rates in the near future.
Impact on the Cryptocurrency Market
The Fed’s approach may impact the cryptocurrency market. If upcoming employment data aligns with or exceeds forecasts, it could lead to a decline in cryptocurrency prices. However, the volatility of the market means that even in such conditions, opportunities for individual asset growth may arise.
Overall, Jerome Powell's speech highlighted the Fed's commitment to independence and attention to inflation risks, indicating potential changes in investor behavior in the cryptocurrency market.
