FED Chairman Jerome Powell Speaks! Did Bitcoin (BTC) React?

US Federal Reserve Chairman Jerome Powell will be announced this week CPI and appeared before the cameras for the second time before the PPI data.

Today too Speaking to the US House of Representatives Finance Committee, Powell made the same speech he made to the Senate Banking Committee on July 9, 2024.

Powell, who has so far taken a cautious stance by stating that more positive data is needed for rate cuts, reiterated his statements that more data is needed for rate cuts, while also giving the green light to rate cuts.

The highlights of Powell’s speech yesterday were as follows:

“First-quarter data did not support greater confidence in the inflation path that the Fed needs to cut rates.

It is inappropriate for the Fed to cut rates until it has greater confidence that inflation is moving toward 2% in a sustainable manner. More positive data would strengthen our confidence in inflation.

High inflation is not the only risk we face.

Restrictive policy helps reduce downward pressure on inflation.

Good data to come will strengthen our confidence in the decline in inflation. The data for the last month shows progress.

As a result, we have made significant progress towards the 2% inflation target.

We continue to make decisions meeting by meeting.

We are determined to bring inflation back to our 2% target and keep long-term inflation expectations firmly anchored.

“Restoring price stability is essential to achieving maximum employment and stable prices over the long term. Our success in achieving these goals matters to all Americans.”

During the question and answer session, Powell did not say anything different than what he said yesterday.

Powell stated in the Q&A session that he did not have a specific inflation figure in mind for interest rate cuts. “I have some confidence that inflation will come down, but I can’t say I have enough confidence that it will fall to 2% sustainably yet.“said.

Powell also added that it is not necessary to wait for inflation to reach 2% to ease policy and cut rates.

It was trading at $57,850 ahead of Powell’s speech. Bitcoin (BTC) continues to move at the same levels.

*This is not investment advice.