Despite a competitive market sale after the president’s rate announcement, the Federal Reserve does not hurry to change course.
Fed chair Jerome Powell, speaking on the Society for Advancing Business Editing and Writing Annual Conferenceemphasizes that the FED is not yet ready to change the interest rates. He noticed that they are waiting for more clarity before they consider adjustments to the policy position and that it is too early to determine the right way of acting for monetary policy.
Rates to cause more inflation
The FED noted that the economic impact of higher rates remains difficult to predict due to constant uncertainties. Higher rates are likely to cause more than expected inflation and slower growth. Although the full impact is uncertain, the key keeps the long -term inflation expectations stable. Their goal is to ensure that every one -off price increases do not evolve into persistent inflation.
Trump’s rates are getting harder than expected, causing a global sale of the shares. JPMorgan now sees a 60% chance on a worldwide recession if the rates remain.
Bitcoin (BTC) slid back under $ 83,000 and remained flat for the past 24 hours, despite the hope for a more Dovish attitude of Powell. However, it performs better than shares, with the Nasdaq fall 4.2% after a decrease of 6% yesterday.
Trump urges Powell to lower the rates
Just before Powell’s speech, Trump criticized him Truth SocialSaying that it is the perfect time for Powell to lower the interest rates. He noted that although he usually acts slowly, but he can now change that. “Interest rates lower Jerome and stop playing politics,” he said.
Meanwhile, Bloomberg analyst James Seyffart Was surprised by the power of Bitcoin and noted that it remained above $ 80,000 despite a sale in risk provisions and a decrease in gold. Blockstream -founder Adam Back added that he always believed that the connection of Bitcoin with traditional markets was artificial. Although Bitcoin’s earlier correlation with traditional markets may be artificially driven, but now it acts in itself.
XRP -Pieken, Bitcoin’s momentum crucial
Moreover, XRP also rose by 12% in just two days and $ 2.12, fed by new purchasing pressure and the new rates of China on the US, that added market volatility. The rally corresponds to bullish signals such as the MACD crosover and a rebound from $ 1.98, with $ 2.28 resistance in sight. If Bitcoin’s momentum applies, XRP can push to $ 2.58.
Bitcoin is currently being traded at $ 83,810, an increase of more than 0.7% in the last day.
