Jerome Powell

Chair

Bitcoin

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In recent comments that the crypto markets took note of, Fed Chair <a href="https://u.today/fed-chair-jerome-powell-drops-crucial-statement-that-impacts-crypto-market">Jerome Powell</a> stated that the U.S. economy has not seen inflation return as the central bank's target, indicating that interest rate cuts are unlikely to occur anytime soon.
"The recent data have clearly not given us greater confidence, and instead indicate that it’s likely to take longer than expected to achieve that confidence," <a href="https://www.cnbc.com/2024/04/16/powell-cites-lack-of-progress-this-year-in-reaching-feds-inflation-goal.html?&amp;qsearchterm=fed">Powell</a> said during a central banking forum. The Fed chair added that while inflation is still falling, it is not moving fast enough.
Echoing recent statements by central bank officials, Powell indicated that the current policy level might remain in place until inflation approaches the target set. He went on to say that unless inflation shows progress, the current level of restriction could be maintained for as long as needed.
Powell's comments marked a shift in his stance following a third consecutive month in which a key inflation measure exceeded forecasts.
Since July 2023, the Fed has maintained its benchmark interest rate target range of 5.25%-5.5%, the highest level in 23 years. That was the outcome of 11 consecutive rate hikes starting in March 2022.
<h2 id="crypto-market-reacts">Crypto market reacts</h2>
<a href="https://u.today/bitcoin-price-alert-historical-trends-spell-trouble-for-btc-as-halving-looms">Bitcoin</a> saw seesaw price action, oscillating between $61,906 and $64,524 in Wednesday's trading session before settling to trade around $62,000. Bitcoin (BTC) was down 1.13% at press time, trading at $61,440.
The global crypto market cap likewise sank 1.84% as the majority of cryptocurrencies suffered losses.
The S&amp;P 500 likewise fluctuated following Powell's speech, briefly falling into the negative before recovering.
Financial markets have had to adjust their expectations for rate cuts this year. At the start of 2024, traders in the fed funds futures market anticipated six or seven cuts this year, beginning in March.
As the data has progressed, predictions have adjusted to one or two drops, assuming quarter percentage point moves, and this might not begin until September.

Fed Chair Jerome Powell Makes Crucial Statement for Crypto Market: Details

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