Federal Reserve Chairman Jerome Powell, who is especially at the center of the crypto money and gold markets, started his speech. The speech is followed closely by gold and Bitcoin investors, as his assessments of US inflation data will provide clues about the next steps the Fed will take.
Highlights from Jerome Powell’s speech and the reaction of Bitcoin and gold
As it is known, after the FOMC meeting to be held on June 14 and 15, on Wednesday, June 15, according to Turkey time At 21:00, the Fed will announce its expected rate decision. As you can follow from Cryptokoin.com news, the market consensus is that there will be an increase of 50 basis points, except for those who expect a falconry 75 basis points in a row.
Jerome Powell told reporters Wednesday that a 75 basis point increase was not something the committee was actively considering. “We are rapidly shifting the policy rate to more normal levels,” said Powell, emphasizing that additional 50 basis points should be on the table in the next few meetings.
Beginning his speech by saying, “We have the means to reduce inflation and we are determined to do so,” Jerome Powell stated that the Fed should seriously focus on this issue in order to reduce inflation.
Touching upon the issue of interest rate hikes, Powell said that in line with his previous statements, he supported the 50 basis point hikes for interest rate hikes. In his speech, Powell also mentioned the effect of external causes for inflation and underlined that convincing evidence for the decrease in inflation should be seen. And at this point, he said in a dove’s voice, “If we see this, we can slow down.”
Also, Jerome Powell, which can be a bit of a confession, said, “It would be better if we raised rates sooner,” and acknowledged that they should start raising rates earlier.
While Jerome Powell’s speech proceeded in this direction, gold prices, which started to recover a little today, turned south and dropped 0.46% to $1,814. The cryptocurrency market, on the other hand, did not react seriously, as the speech was in line with expectations. Although the leading crypto Bitcoin (BTC) initially slid below $30,000, at the time of writing, it rose by 1.50% on a daily basis to $30,207, according to CoinMarketCap data.
