What Fed Chair Jerome Powell’s Comments Mean For Crypto Market?

Federal Reserve chair Jerome Powell said the pace of interest rate rise would depend on incoming data. “We are at the very lowest level of what is restrictive.” The number of job vacancies is twice the number of the unemployed, he said. Powell added that the numbers show how different the current cycle is from other cycles. He was speaking about the overall macroeconomic scenario following the FOMC meet decision to increase interest rate by further 75 bps. Meanwhile, analysts are weighing in on how the fresh rate hike and Jerome Powell comments could impact crypto prices going forward.

Crypto Prices Remains Largely Flat After Fed Rate Hike

Bitcoin (BTC) has not shown any significant reaction to the fresh interest rate hike. As of writing, BTC is trading at $19,578.48, up 0.42% in the last one hour, according to price tracking platform CoinMarketCap. Responding to questions of global recession concerns, Powell said the Fed is very aware of what’s happening in other economies.

“Our forecast takes all of that into account — the policy decisions and the economic situation in other countries. It’s hard to talk about collaboration in a world with very different situations. There’s a lot of information sharing on what other economies are doing.”

Is Recession A Possibility?

Asked whether the data is indicating a possibility of recession, Powell said there is a possibility of slow growth. There is a very high likelihood of a period of very slow level of growth, he added. “What we hear from people is that they are suffering from inflation.” He added that there was a need to get rates up to set up the economy for a long period of smooth phase. Our tight focus is now to increase the interest rate in the short term, he added. He emphasized on the need to soften up the labor market to get things right in the economy.

Anvesh reports major developments around crypto adoption and trading opportunities. Having been associated with the industry since 2016, he is now a strong advocate of decentralized technologies. Anvesh is currently based in India. Follow Anvesh on Twitter at @AnveshReddyBTC and reach him out at [email protected]

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