Crypto industry leader Jesse Powell has made a significant donation of million, primarily in ethereum, to Donald Trump’s presidential campaign. In a social media post, Powell cited the crypto industry’s struggles with regulation under the Biden administration, specifically naming Elizabeth Warren and Gary Gensler as obstacles. Powell expressed optimism that Trump’s pro-crypto stance will […]
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Powell: Economy Progresses but Inflation Still ‘Too High’ to Adjust Benchmark Rate
On Wednesday, March 20, 2024, the Federal Open Market Committee (FOMC) declared that there will be no change to the federal funds rate for the time being. The committee emphasized its intention not to lower the target rate until there is “greater confidence that inflation is moving sustainably” toward the 2% target. Fed Pauses Rate […]
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Jerome Powell Clarifies: US Far From Introducing a Central Bank Digital Currency
Federal Reserve Chair Jerome Powell stated before the Senate Committee on Banking, Housing, and Urban Affairs that the United States is far from adopting or even recommending the introduction of a central bank digital currency (CBDC), emphasizing a significant distance from such a possibility. He assured that any potential CBDC would not be designed for […]
Bitcoin News
Fed Chair Powell Eases CBDC Concerns: US Far From Direct Fed Accounts, Emphasizes Need for Congressional Approval
Federal Reserve Chairman Jerome Powell engaged with the Senate Banking Committee, signaling that the U.S. is just beginning to contemplate the introduction of a central bank digital currency (CBDC). Powell Assures No Direct Fed Accounts in CBDC Plans, Seeks Congressional Go-Ahead In his conversation with the Senate Banking Committee, Fed Chair Jerome Powell explored the […]
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Fed Chair Powell Briefs Lawmakers on US Central Bank Digital Currency Progress
Federal Reserve Chairman Jerome Powell has provided an update to Congress members regarding the Fed’s central bank digital currency (CBDC) work. “If we’re going to have a CBDC, Congress needs to authorize it,” he stressed. Moreover, the Fed chair reportedly said that a framework for stablecoins is needed. Fed Chair Powell on US CBDC and […]
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Fed Chair Powell Says US Government Is on ‘Unsustainable’ Fiscal Path
Federal Reserve Chairman Jerome Powell says in the long run, the U.S. federal government is on an unsustainable fiscal path due to its ballooning debt growing faster than the economy. Moreover, the Fed chair cautioned that there will be some banks that have to be closed or merged out of existence.
Jay Powell on US Economy, Rate Cuts, Banking Crisis
Federal Reserve Chair Jerome Powell addressed issues concerning the U.S. economy, interest rate cuts, and potential banking crisis in an interview with 60 Minutes, published on Sunday. Replying to a question about whether the national debt is a danger to the U.S. economy, Powell said:
In the long run, the U.S. federal government is on an unsustainable fiscal path.
He noted that it means “the debt is growing faster than the economy,” emphasizing that “it is unsustainable.” However, Powell stressed: “I don’t think that’s at all controversial. I think we know that we have to get back on a sustainable fiscal path, and I think you’re starting to hear now from people in the elected branches who can make that happen. It’s time that we got back to that focus.”
The Fed chair continued: “I think the pandemic was a very special event, and it caused the government to really spend to ward off what looked like very severe downside risks. It’s probably time, or past time, to get back to an adult conversation among elected officials about getting the federal government back on a sustainable fiscal path.”
Regarding when the Fed will start cutting interest rates, Powell shared: “We want to see more evidence that inflation is moving sustainably down to 2% … We just want some more confidence before we take that very important step of beginning to cut interest rates.” He clarified: “Basically, we want to see more good data … It doesn’t need to be better than what we’ve seen, or even as good. It just needs to be good. And so, we do expect to see that. And that’s why almost every single person on the Federal Open Market Committee believes that it will be appropriate for us to reduce interest rates this year.”
Powell also addressed the likelihood of bank failures across the U.S. as seen in 2008. The Fed chairman opined: “I don’t think there’s much risk of a repeat of 2008. I also think, you know, we need to be careful about making proclamations, particularly about the future. Things have surprised us a lot. But no, on this, I do think it’s a manageable problem.” Nonetheless, he cautioned:
There will be certainly — there will be some banks that have to be closed or merged out of, out of existence because of this. That’ll be smaller banks, I suspect, for the most part.
What do you think about the statements by Fed Chair Jerome Powell? Let us know in the comments section below.
Bitcoin, Ethereum Technical Analysis: BTC Consolidates Recent Gains, as Traders Anticipate Powell Speech
Bitcoin profit takers swooped in to capture recent profits on Wednesday, as the cryptocurrency retreated below a recent high above ,000. The decline comes ahead of Federal Reserve Chair Jerome Powell’s speech later today. Ethereum also edged lower, dropping under the ,800 level.
Bitcoin
Bitcoin was trading lower on Wednesday, as traders appeared to have finally decided to secure profits, following recent gains.
BTC/USD slipped to an intraday low of ,278.40 late in yesterday’s session, after an earlier peak above the ,000 mark.
Although bulls have since pushed the cryptocurrency higher, with the price now at ,246.74, it remains below heights seen on Tuesday.
One reason for this being the relative strength index (RSI), which was significantly overbought on Tuesday, tracking around 89.00.
Currently, the index is at a reading of 87.22, which is marginally lower, but still remains primed for a reversal.
Today’s speech could be the storm that traders are waiting to clear, before either intensifying recent momentum, or selling off further.
Ethereum
Ethereum (ETH) retreated below the ,800 level on Wednesday, snapping a six-day winning streak.
Following a high of ,852.68 during yesterday’s session, ETH/USD fell to a low of ,758.69 earlier in the day.
ETH has since rebounded, marginally, and is now trading at ,784.57, which is over 3% lower than Tuesday’s peak.
Overall sentiment remains largely positive, with the 10-day (red) moving average extending its upward trend versus its 25-day (blue) counterpart.
Although the RSI in ethereum is also overbought, and tracking above 70.00, bulls could attempt to push the price above ,900 in this upcycle.
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How will today’s Fed speech impact crypto prices? Leave your thoughts in the comments below.
Fed’s Powell Hints at Continued Elevated Rates; Fedwatch Tool Indicates Near-Certain Hike Next Month
Federal Reserve Chair Jerome Powell stressed on Thursday the U.S. central bank remains committed to bringing down inflation and will maintain restrictive monetary policy until prices cool. Speaking at the Economic Club of New York, Powell hinted that further interest rate hikes may be appropriate if price pressures persist.
Powell Signals for More Monetary Tightening as Fed Remains Focused on Inflation
In his remarks, Jerome Powell said inflation is still too high despite recent moderation. While headline and core PCE inflation have come down from their peaks earlier this year, the Fed chair said it is too early to be confident inflation will stay near the Fed’s 2% target.
“While the path is likely to be bumpy and take some time, my colleagues and I are united in our commitment to bringing inflation down sustainably to 2 percent,” Powell explained at the luncheon.
He further noted tightening financial conditions are putting downward pressure on inflation. But Powell warned persistent economic growth or tight labor markets could necessitate further policy tightening.
“Additional evidence of persistently above-trend growth, or that tightness in the labor market is no longer easing, could put further progress on inflation at risk and could warrant further tightening of monetary policy,” Powell told attendees.
The Fed chair stressed longer-term Treasury yields have risen sharply, tightening financial conditions. He said the central bank is monitoring these developments closely. “We remain attentive to these developments because persistent changes in financial conditions can have implications for the path of monetary policy,” Powell remarked.
The 10-year Treasury yield jumped to a 4.9% high this week hitting its highest level in 16 years. Since Powell’s statements, the CME Fedwatch tool shows a 99% chance a rate hike will occur next month. Investors expect the Fed will deliver another 0.25 percentage point rate increase at its November meeting.
Powell underscored the Fed’s unwavering commitment to reining in inflation, aiming for the central bank’s 2% target over the long haul. In essence, Powell conveyed that the Fed would be “policy restrictive until we are confident that inflation is on a path to that objective.”
Following his remarks, all four U.S. benchmark stock indices took a downturn. On the other hand, precious metals saw a modest uptick, while the crypto markets remained largely unfazed by the Fed chair’s pronouncements. The drop in U.S. equities was attributed to Powell’s speech in New York.
What do you think about Powell’s recent statements at the Economic Club of New York? Share your thoughts and opinions about this subject in the comments section below.
Powell: More Rate Hikes May Be Needed to Curb Inflation
The chairman of the U.S. Federal Reserve, Jerome Powell, warned on Friday that inflation remains too high and signaled the central bank may continue raising interest rates to get it under control. In remarks at the Jackson Hole symposium, Powell acknowledged recent progress in lowering inflation but said there’s “substantial further ground to cover” before returning to the Fed’s 2% target.
Powell Signals Further Rate Hikes Amid Lingering Inflation Concerns; Pledges ‘We Will Keep at It Until the Job Is Done’
While headline inflation has fallen from its peak of 7% in June 2022, Powell focused his remarks on core inflation, which excludes volatile food and energy prices. Core inflation remains elevated at 4.3% and Powell said “sustained progress is needed” through “restrictive monetary policy” to bring it down further.
Powell pointed to declining goods prices and a cooling housing sector as evidence that rate hikes are working to curb demand. But he also cited high service prices and an exceptionally tight labor market as areas needing improvement in the coming months.
“Given the size of this sector, some further progress here will be essential to restoring price stability,” Powell said. “Over time, restrictive monetary policy will help bring aggregate supply and demand back into better balance, reducing inflationary pressures in this key sector.”
The Fed chair indicated officials will continue assessing economic data but are prepared to raise rates further if appropriate. He reiterated the Fed’s commitment to reduce inflation while cautioning that doing so will likely require below-trend economic growth for a period.
“We will keep at it until the job is done,” Powell emphasized in his remarks. He said uncertainty around how much additional tightening is needed makes the Fed’s task challenging. But he stressed the risks of not doing enough outweigh concerns about tightening too rapidly.
While acknowledging a slowing economy, Powell said the Fed must see concrete evidence of easing inflationary pressures. His remarks suggest additional rate hikes lie ahead if price and wage growth fail to moderate substantially in the coming months.
What do you think about Powell’s statements at this year’s Jackson Hole symposium? Share your thoughts and opinions about this subject in the comments section below.
Powell Speaks At Jackson Hole, Bitcoin Volatility Comes Back With A Vengeance?
US Federal Reserve (Fed) Jerome Powell spoke at the annual Jackson Hole Economic Symposium, which has significantly pressured the Bitcoin price. Consolidation has been the new normal for BTC over the past few weeks, but with September around the corner, macroeconomic events are likely to exercise renewed influence.
As of this writing, Bitcoin has been hovering around ,000, but with increasing fluctuations as the Jackson Hole event approaches. All eyes and ears are set on the Fed Chair as he takes center stage and influences global markets.
Jackson Hole Takes Place, Price Of Bitcoin Reacts
In the first part of his speech, the US Fed Chair highlighted the increasing inflation due to the COVID-19 pandemic and its impact on the country’s economy. Government officials believe the economy has shrunk in recent years, but there is evidence that some sectors remain strong and might contribute to swelling inflation.
The Fed Chair stated the following, emphasizing intentions to bring down inflation, as measured by the Consumer Price Index (CPI), to 2%. Powell noted that further potential interest rate hikes could have unintended consequences for financial markets:
We are prepared to raise interest rates further until inflation is on a convincing path towards the 2% rate.
As of this writing, the Bitcoin price and the crypto market are yet to show some reaction to Powell’s seemingly hawkish speech. Across social media, some analysts are pointing out the aggressive tone from the Fed Chair, but there weren’t unexpected statements.
An analyst called the current price action a classic “Powell is talking” dynamic, with the Bitcoin price moving sideways from ,000. As the analyst pointed out, the price action seems to lean toward the upside as the cryptocurrency seeks liquidity around upper levels.
#Bitcoin Bulls trying to push higher here and now trading back at the Daily & Weekly open.
Powell speaking soon and a possible grayscale decision in 1.5 hours as well.
Both can impact the market but mostly interested in it’s reaction. pic.twitter.com/JpVMjCsE3C
— Daan Crypto Trades (@DaanCrypto) August 25, 2023
On low timeframes, uncertainty remains king. On higher timeframes, a report published by Deribit Insights claims that the market structure will need time to recover following an aggressive move to the downside and the increasing volatility.
In that sense, sideways movement seems likely for the coming weeks until another macroeconomic event comes into the picture. The report stated:
It may take a while for this to recover even if the market finds a new range in the forthcoming weeks as some of the vol selling appetite may have waned, especially on the front end.
Chart from Tradingview