Fed Chair Jerome Powell Emphasizes Need for More Data and Discussion Before Cutting Rates, Impact on Cryptocurrency Markets
Federal Reserve Chairman Jerome Powell emphasized at an event on Wednesday that more data and discussion are needed before interest rates can be cut, something financial markets expect to happen in June. He said recent job growth and inflation data have exceeded expectations. While policymakers generally believe rates will fall later this year, he said that will only happen if they have "greater confidence that inflation can fall sustainably to the Fed's 2% target." However, Powell did not indicate when the Fed might loosen its grip on credit, and upcoming employment data, particularly the March nonfarm payrolls report scheduled for Friday, as well as next week's inflation readings, will play a key role in defining forecasts for the Fed's April 30-May 1 and June 11-12 policy meetings. Current views on the Fed are impacting the cryptocurrency market, which has sold off since the beginning of the week. The strengthening of the U.S. dollar as continued U.S. price pressures have prompted investors to reduce their bets on a Fed rate cut has provided a more difficult backdrop for speculative sectors of the global market, such as the cryptocurrency industry.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Besant brings Peashooter to tank battle, US Treasury repo hits a wall, 10-year US Treasury yield at three-year high
U.S. Treasury bonds are currently facing multiple pressures, including high oil prices intensifying inflation, rising expectations of Federal Reserve rate hikes, soaring fiscal deficits, and large-scale corporate bond issuances. At the same time, the $6 billion buyback scale has fallen short of market expectations. While Bessent had previously made lowering long-term yields a policy goal, on Tuesday he admitted that it's impossible to change the "equilibrium" price of government bonds. Analysts pointed out that buybacks cannot stop the fundamentals-driven yield trends, likening it to "the Treasury bringing a pea shooter to a tank battle."
Apple (AAPL.US) Enters the "Foldable Screen Era": $1999 iPhone Duo Unveiled, AI Fully Integrated into Hardware Ecosystem
Apple held its annual fall product launch event on Wednesday, officially releasing the company's first foldable smartphone, the iPhone Duo. The event also saw the debut of the iPhone 18 Pro series, Apple Watch Series 12, Apple Watch Ultra 4, and AirPods 5, among other new products.
Oil prices return to $100, sparking inflation concerns as traders ramp up rate hike bets on European and UK central banks
As international energy prices continue to rise, intensifying market concerns about persistently high inflation over the coming year, traders are significantly increasing their bets on further interest rate hikes by the European Central Bank and the Bank of England.
Crypto prices
More
