Jerome Powell

Bitcoin

Impact

Following the interest rate decision announced after the turbulent month of October, Fed Chairman Powell took his place to answer questions and make statements regarding the matter. 
In addition to traditional market participants, investors interested in cryptocurrencies should be cautious during and after the statements, as there may be high volatility in the market. So, what does Powell talk about in the latest Fed meeting that could affect the global economy and the world of cryptocurrencies? 
<h2 style="text-align: justify" id="strong-powell-s-statements-strong">Powell’s Statements</h2> 
As of the time this article is written, Fed Chairman Jerome Powell first makes statements concerning the US economy. Recent developments such as the Israel-Hamas conflict and current events can have a significant impact on the direction of the meeting. 
The focus of the speech may indicate what kind of statements can be made regarding the tensions with the SEC regarding ETFs. New statements made during this critical period for cryptocurrencies can shape the opinions and investments of investors considering investing in the crypto world. 
<img decoding="async" class="aligncenter size-full wp-image-272497" src="https://coin-turk.com/wp-content/uploads/2023/11/jerome-powell-aciklama-fed-fomc.jpg" alt="" width="1280" height="720"> 
However, it may not be accurate to think that the speech will be limited to this. Considering Powell’s past statements, not only short-term but also long-term ideas can be revealed. 
The effects of the speech, which started at 21:30, will begin to show in the following minutes. It is always healthier for investors to be prepared for scenarios with high market volatility. We will share the important topics mentioned in the speech in this article. 
According to the announcement made at 21:00, the Fed unanimously decided to keep the interest rate unchanged. Considering the ongoing economic imbalances in the shadow of the war, it is not clear in which direction the statement to be made by Powell will be. 
<ul style="text-align: justify"> 
 <li>21:30 Powell started his speech.</li> 
 <li>The full effects of tightening have not yet been felt. The economy has grown significantly above expectations.</li> 
 <li>The labor market remains tight. Employment gains are strong but less than earlier in the year. Nominal wage growth has shown some signs of easing. Labor demand still exceeds supply.</li> 
 <li>Inflation has been moderate since mid-last year. A few months of good inflation data are just the beginning of what needs to be done.</li> 
 <li>There is still a long way to go for inflation to reach 2%. The restrictive policy stance puts downward pressure on inflation. We are determined to maintain a sufficiently restrictive stance.</li> 
 <li>We are paying attention to the latest data showing the revival of economic indicators and labor demand. These can jeopardize further progress on inflation.</li> 
 <li>When determining whether we need further tightening, we will consider cumulative tightening, delays, and economic and <a href="https://newslinker.co/category/finance/" data-wpel-link="exclude">financial</a> developments.</li> 
 <li>Labor conditions are softening. Inflation is decreasing but still well above the target. Tighter financial conditions due to higher long-term interest rates, a stronger dollar, and lower stocks may be important for future interest conditions.</li> 
 <li>We are monitoring the increase in long-term yields. Higher long-term rates cannot be a reflection of higher policy rates from us; these changes should also be significant.</li> 
 <li>It is not thought that the expectation of higher Fed policy rates has caused higher long-term rates. We have not made any decisions regarding future meetings.</li> 
 <li>The idea that it will be difficult to raise rates again after taking a break is not correct. The Fed staff did not include a recession in their forecasts in this meeting.</li> 
 <li>Financial conditions have clearly tightened. Over time, this will have an impact; we just don’t know how fast it will be. It is difficult to translate tightening financial conditions into the number of interest rate hikes.</li> 
 <li>We are observing the effects of higher rates on the housing market and durable goods purchases.</li> 
 <li>If we decide that tightening is necessary, we will tighten. We look at the labor market, economic growth, and financial conditions. We are not considering any interest rate cuts at the moment.</li> 
</ul> 
<h2 style="text-align: justify" id="strong-fed-and-cryptocurrencies-strong">Fed and Cryptocurrencies</h2> 
Fed decisions, closely followed by the whole world, continue to affect not only the global economy but also cryptocurrencies. The interest rate hikes that have been made since March of last year have been replaced by keeping the rates steady in the last two meetings. 
In addition, during the time between the two meetings, new XRP decisions, the Israel-Hamas conflict, and the SEC-<a href="https://en.coin-turk.com/bitcoin-consolidation-continues-analyst-points-to-critical-price-levels/" data-wpel-link="internal">Binance</a> tension drew attention. The most important thing for cryptocurrencies was the changes regarding ETFs. In this process, traditional investment instruments gained value against the dollar depending on the environment that emerged. 
When examined as a whole, ongoing legal processes may have excited investors for a possible ETF approval. There was a noticeable increase in the prices of <a href="https://en.coin-turk.com/sec-does-not-appeal-court-decision-opening-the-way-for-grayscale-bitcoin-etf/" data-wpel-link="internal">Bitcoin</a> and altcoins throughout the last month. As of the start of the speech, Bitcoin continues to trade at $34,500. 
More details of the news are still coming… Continue Reading: <a href="https://en.coin-turk.com/fed-chairman-jerome-powells-statements-and-their-impact-on-the-crypto-market/" data-wpel-link="internal">https://en.coin-turk.com/fed-chairman-jerome-powells-statements-and-their-impact-on-the-crypto-market/</a>

Fed Chairman Jerome Powell’s Statements and Their Impact on the Crypto Market

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