Crypto currency investors are closely following the statements of the FED President Jerome Powell. Powell said that the US economy has the power to overcome harsh financial measures and said that the rise in inflation could be encountered more surprises. Bitcoin, Altcoin and Gold Market began a slight decline after explanations.
Interest statement from Fed President Powell
FED President Jerome Powell said at a meeting in Washington and said that ongoing interest rate increases would be appropriate. Fundamental inferences summarized by Reuters:
- The FED is strongly connected to reducing inflation and moves rapidly to do it.
- The speed of future interest rates will continue to depend on incoming data and the developing economic appearance.
- We will make our decisions by meeting.
- In order for the US II to have a strong labor market conditions that benefit all Americans, inflation must be reduced.
- The existing data for May show that core inflation is probably kept at a rate of 4.9 %annually or slightly relaxed.
- The Fed’s inclusive focus is to return inflation to 2 %target and keep longer -term inflation expectations intact.
- Long -term supply chain restrictions aggravate inflation that is likely to exacerbate the supply chain problems of Covid quarantines in China, the occupation of Ukraine, Russia’s occupation of Ukraine.
According to Jerome Powell, the US economy is solid enough to withstand restrictive monetary policy. He says that the Fed’s 2 %target remains significantly above, but there are some indicators that the core inflation, excluding food and energy costs, may have fallen a little last month.
The FED President says that the ongoing interest rate increases will be appropriate.
The FED last week at his monetary policy meeting, increased interest rates by 75 basis points to prevent the rise of inflation, making the biggest interest rate hike since 1994. Powell says it would be cautious to continue to increase interest rates, but the increase will be determined by economic statistics and economic estimation to be announced. Powell adds that the economy is strong enough to maintain restrictive monetary policy. Other titles summarized by Reuters are:
- The latest data shows that the real GDP is collected in the current quarter, and consumer expenditures remain strong.
- The growth in fixed investments seems to be slowing down. The housing sector seems to have softened partly due to high mortgage rates.
- Tightening financial conditions should continue to slow down growth and help balance supply and demand.
- While the labor demand is very strong, the supply of labor is suppressed. The labor force participation rate has changed very little since January.
- In the face of the rapidly developing economic environment, our policy adapts and will continue to do so.
- Financial conditions ‘significantly’ tightened. This reflects both the measures taken so far and the expected actions.
- The FED will continue to convey his thoughts as clearly as possible.
- Inflation clearly surprises upwards. There may be other surprises; The Fed will have to be agile in responding to the incoming data and the developing appearance.
- The economy is very strong and in a good position to cope with a tight monetary policy.
How did Bitcoin react to Gold and Shıb?
These interpretations do not seem to have a significant impact on the performance of the dollar against their main competitors. The spelling is traded at 104.30 with a decrease of 0.1 %for the US dollar index. Bitcoin, Ethereum, Cardano and Shiba Inu (SHIB) declined after the comments. During writing, Bitcoin is traded for $ 20,713.28 with a decrease of 3.99 %in the last 24 hours. Today, the lowest level of the day in the early hours of the morning recorded $ 20,045.63.
Gold rose in the second half of the day. In the meantime, $ 1,840. As FOMC President Powell stated, the reference 10 -year US Treasury bond return fell by more than 4 %during the day and fueled the daily rally of XAU/USD. On Wednesday, Gold saw some sale for the fourth day in a row. Meanwhile, in the first half of the European session, the $ 1,823 region fell to the lowest level of four days.
Bitcoin and Altcoins fall
After the statements of Bitcoin and Ethereum Powell, he declined. The last 24 -hour depreciation of Ethereum is over 5 %. Kriptokoin.comAs we have reported, Shıb, which rose more than 30 %on June 21, tries to maintain its acceleration. During the spelling, it depreciated about 1.5 %.
