Fed Chair Jerome Powell Drops Crucial Statement That Impacts Crypto Market
While policymakers generally believe that interest rates will decline later this year, Jerome Powell stated that this will only happen when they "have greater confidence that inflation is moving sustainably down" to the Fed's 2% target.
Federal Reserve Chairman Jerome Powell has emphasized the need for more discussion and data before interest rates are reduced, which financial markets expect to occur in June. "Recent readings on both job gains and inflation have come in higher than expected," Powell said at an event in Stanford, California, on Wednesday. While policymakers generally believe that interest rates will decline later this year, he stated that this will only happen when they "have greater confidence that inflation is moving sustainably down" to the Fed's 2% target. The Fed chairman's recent remarks did not make any new policy points. As previously reported, Powell stated in a press conference at the Fed's most recent policy meeting in March that the baseline outlook is for rates to fall "later this year," and that recent data did not "materially change the overall picture, which continues to be one of solid growth."
However, Powell has not indicated when the Fed could ease its grip on credit, with upcoming jobs data, particularly the March nonfarm payrolls report scheduled for release on Friday, and incoming inflation readings next week to be crucial in determining the forecast for the central bank's April 30-May 1 and June 11-12 policy meetings.
