Reserve

Jerome Powell

Chair

Impact

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Federal Reserve Chairman <a href="https://u.today/jerome-powell-makes-crucial-statement-for-crypto-market-details" rel="noopener noreferrer nofollow">Jerome Powell</a> has highlighted the need for more debate and data before interest rates are cut, which financial markets anticipate will occur in June.
"Recent readings on both job gains and inflation have come in higher than expected," Powell said at an event in Stanford, California, on Wednesday.
While policymakers largely believe that interest rates will fall later this year, he stated that this will only happen when they "have greater confidence that inflation is moving sustainably down" to the Fed's 2% target.
The Fed chairman's recent remarks made no new policy points. As previously reported, Powell stated in a press conference at the Fed's most recent policy meeting in March that the baseline outlook is for rates to fall "later this year," and that recent data did not "materially change the overall picture, which continues to be one of solid growth."
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 In his latest speech, Fed Chairman Powell said recent readings on both job gains and inflation have come in higher than expected. He said interest rate cuts will happen only when they "have greater confidence that inflation is moving sustainably down" to the Fed's 2% target.…— Wu Blockchain (@WuBlockchain) <a href="https://twitter.com/WuBlockchain/status/1775697711486177622?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">April 4, 2024</a>
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However, <a href="https://www.reuters.com/markets/rates-bonds/feds-powell-repeats-there-is-time-deliberate-over-rate-cuts-2024-04-03/" rel="noopener noreferrer nofollow">Powell</a> has not indicated when the Fed could ease its grip on credit, with upcoming jobs data, particularly the March nonfarm payrolls report slated for release on Friday, and incoming inflation readings next week to be crucial in defining the forecast for the central bank's April 30-May 1 and June 11–12 policy meetings.
Inflation, according to the Fed's preferred measure, remains half a percentage point or more above the central bank's 2% goal, and recent progress has been limited.
<h2 id="impact-on-crypto-markets">Impact on crypto markets</h2>
The current views regarding the Fed are having an impact on the cryptocurrency market, which has seen a sell-off since the start of the week.
<a href="https://u.today/14-billion-btc-shifted-to-whale-addresses-in-mega-accumulation-spree" rel="noopener noreferrer nofollow">Bitcoin</a> plunged the most in nearly two weeks, reaching a low of $64,589 on April 2. Persistent U.S. pricing pressures prompted investors to reduce bets on Fed interest-rate reduction, strengthening the dollar. That presents a more difficult backdrop for speculative sectors of global markets, such as the cryptocurrency industry.
Bitcoin has fallen almost 8.26% since reaching a high of $73,798 in mid-March. Recent data showed that U.S. manufacturing surprisingly expanded for the first time since September 2022, and input costs rose.
At the time of writing, BTC was up 1.62% in the last 24 hours to $67,618 after reaching intraday highs of $68,027.&nbsp;

Fed Chair Jerome Powell Drops Crucial Statement That Impacts Crypto Market

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