After nearly two weeks of explosive gains, crypto prices cooled briefly on Thursday and Friday, possibly due to a speech by US Federal Reserve Chairman Jerome Powell.
Speaking in Dallas on Thursday, Powell struck a somewhat ambiguous tone on future US monetary policy choices.
He continued to emphasize that the Fed views current risks to inflation and employment targets as “approximately balanced.”
“We know that reducing policy discretion too quickly could hinder progress on inflation. At the same time, phasing out policy too slowly could unnecessarily weaken economic activity and employment.
We will shift policy to a more neutral setting over time. But the road to it is not predetermined. In considering additional adjustments to the target range for the Federal Funds Rate, we will carefully assess the incoming data, the evolving outlook, and the balance of risks. The economy is not sending any signals that we should rush to cut rates. The strength we see in the economy right now gives us the opportunity to approach our decisions carefully. Ultimately, the path of policy rates will depend on how incoming data and the economic outlook evolve.”
The overall crypto market cap fell on Thursday but recovered on Friday afternoon and was up more than 2% in the past day at the time of writing, according to CoinGecko.
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