Federal Reserve Chair Jerome Powell said the pace of interest rate hikes will depend on incoming data. “We are at the lowest level of what is restrictive.” The number of vacancies is twice that of the unemployed, he said. Powell added that the numbers show how different the current cycle is from other cycles. He spoke about the overall macro scenario following the FOMC meeting’s decision to hike interest rates by another 75 basis points. Meanwhile, analysts are weighing how the fresh rate hike and Jerome Powell’s comments could affect future crypto prices.
Crypto prices remain largely unchanged after the Fed rate hike
Bitcoin (BTC) and other cryptocurrencies have not shown a significant reaction to the renewed rate hike. However, the initial reaction was not favorable for investors as prices plummeted. It was only later, when Jerome Powell made the remark, that crypto prices recovered to normal levels. Ideally, taking into account rising inflation, investments could continue to flow into the crypto market. But it would also depend on whether or not the economy controls inflation fast enough. In response to questions about global recession concerns, Powell said the Fed is very aware of what is happening in other economies.
“Our forecast takes all of that into account – the political decisions and the economic situation in other countries. It’s hard to talk about collaboration in a world with very different situations. A lot of information is shared about what other economies are doing.”
Is a recession a possibility?
When asked if the data pointed to a possible recession, Powell said there was a possibility of slow growth. There is a very high possibility of a very slow growth phase, he added. “What we’re hearing from people is that they’re suffering from inflation.” He added that raising interest rates is necessary to prepare the economy for a long stretch of smooth running. Our focus now is on raising interest rates in the near term, he added. He stressed the need to soften the labor market in order to put things in order in the economy.
Meanwhile, crypto assets reacted normally to the Fed’s rate hike decision. Over the past hour, Bitcoin (BTC) and Ethereum (ETC) are up 2.65% and 2.78%, respectively. As of this writing, according to price tracking platform CoinMarketCap, BTC is priced at $19,451.18, up 2.23% in the last 24 hours.
Anvesh reports on key developments surrounding crypto adoption and trading opportunities. Associated with the industry since 2016, he is now a strong advocate for decentralized technologies. Anvesh currently resides in India. Follow Anvesh on Twitter at @AnveshReddyBTC and reach him at [email protected]
The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or the publication assumes no responsibility for your personal financial loss.
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