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

US Federal Reserve (FED) Chairman Jerome Powell appeared in front of the cameras for the second time before the CPI and PPI data to be announced this week.

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

Powell, who has taken a cautious stance so far by stating that more positive data is needed for interest rate cuts, repeated his statements that more data is needed for interest rate cuts.

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

“First quarter data did not support greater confidence in the path of inflation that the Fed needed to cut interest rates.

It is inappropriate for the Fed to cut rates until it gains more confidence that inflation is sustainably moving toward 2%. More positive data will strengthen our confidence in inflation.

High inflation is not the only risk we face.

Restrictive policy helps reduce downward pressure on inflation.

Incoming good data will strengthen our confidence in the decline in inflation. The last month’s data show that there is progress.

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

We continue to make decisions in meetings.

We are determined to return inflation to our 2% target and firmly anchor long-term inflation expectations.

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

When it came to the question and answer session, Powell did not say anything different in addition to his speech yesterday.

While Powell stated that he did not have a specific inflation number in mind for interest rate cuts in the question and answer session, he said, “I have some confidence that inflation will decrease, but I cannot say that I have enough confidence that it will decrease to 2% in a sustainable way yet.”

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

Bitcoin (BTC), which was traded at $57,850 before Powell’s speech, continues to move at the same levels.

*This is not investment advice.

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