The Kansas City Federal Reserve Bank is preparing to hold its annual Economic Policy Symposium, also called the Jackson Hole meeting, from August 24-26. Fed member Patrick Parker, speaking to CNBC before the meeting, continued to give hawkish messages. Bitcoin price is trying to maintain its strength before critical developments.
Will Bitcoin react to Jackson Hole Meeting and Jerome Powell’s speech?
The US and other economies struggled with the effects of the Covid-19 outbreak in 2021 and 2022. Therefore, the focus of this year’s Jackson Hole meeting will be “Structural Changes in the Global Economy”. The geopolitical and economic effects of Russia’s invasion of Ukraine are also among the main topics. Most importantly, however, is the BRICS Group’s threat to move away from the US dollar for international trade deals. The BRICS countries met in August to define a new global currency.
cryptocoin.com As you follow, most experts see this move as a historic blow for the US dollar. According to some, Bitcoin will be the absolute beneficiary of the developments.
August 22, 2023, in Johannesburg, South Africa, BRICS nations announce gold backed crypto. US $ will die. Trillions of US $ rush home. Inflation through the roof. Buy Gold,
Silver. Bitcoin to $120k next year.— Robert Kiyosaki (@theRealKiyosaki) July 11, 2023
On August 25, 2023, Fed Chairman Jerome Powell will speak at the conference. The Fed Chairman’s speech comes amid the darkness surrounding the US economic outlook. Comments on inflation targets in the short term, the Fed’s path towards the 2% inflation target and target interest rate decisions are closely followed by market participants. Bitcoin price reacted quickly to the developments that came out of the meeting earlier.
The President of the European Central Bank, Christine Lagarde, will also speak on the same day as the President of the US Fed. Meanwhile, Powell’s speech will have a hot impact on the Bitcoin market, which has been slowing down over the past few weeks.
FED member gives hawk messages as BTC price stabilizes
Before FED Chairman Jerome Powell’s speech, which will take place tomorrow, FED member Patrick Parker also made statements. Parker spoke to CNBC about inflation, interest rates and the Fed’s approach. Parker, who is also the chairman of the Philadelphia Fed, emphasizes that the FED should continue its tight monetary policy for a while. Also, in good news for Bitcoin, he stated that interest rates will remain stable this year. He said that if inflation falls next year, interest rate cuts may be on the agenda. Highlights from Harker’s statements are as follows:
- We are not affected by the effects of the rise in the bond markets. As the FED, we probably took the necessary steps regarding monetary policy.
- We expect the unemployment rate to rise to 4% or slightly above.
- I do not believe that artificial intelligence technology will radically shake the economy.
- The effects of the slowdown in growth in China on the US economy remain unclear.
- I think that we will keep the interest rates constant this year, and that if inflation falls next year, interest rate cuts can be started.
- For interest rate cuts, we need to see the decrease in inflation first. It cannot be predicted exactly when the FED will cut interest rates.
- (Bitcoin price was trading above $26,000 during the developments)
