Shiba Inu (SHIB), Cardano (ADA), XRP and several other altcoins turned green for a speech by Federal Reserve Chairman Jerome Powell before giving up some of his gains.
Shiba Inu (SHIB), Cardano (ADA), XRP and several other altcoins turned green for a speech by Federal Reserve Chairman Jerome Powell before giving up some of his gains.
Powell dismissed market concerns about “stagflation,” a scenario in which slow economic growth is accompanied by high inflation. He said he didn’t see “the deer or the inflation.”
Earlier, JPMorgan CEO Jamie Dimon amplified concerns about stagflation and warned that the U.S. economy could be returning to the 1970s.
In response to Powell’s speech, American businessman and investor Jeffrey Gundlach said he expects only one rate cut this year. He doesn’t see a rate cut in June. The Federal Reserve Chairman himself has stated that it would be difficult to predict how rates will change, but he has predicted that the next policy move is unlikely to be a cut.
According to Powell, rate cuts could come sooner due to an unexpected weakening of the labor market. However, the decision will continue to depend on the inflation data that is known. Powell has stressed that the Federal Reserve is now satisfied with inflation remaining at 3%. The Federal Reserve’s goal is to get inflation back to 2% before it can start cutting rates.
Interest rate futures are bet on a single rate cut in 2024. The first rate cut is expected to come in September.
The cryptocurrency market has been hit hard by the Federal Reserve’s U-turn, with Bitcoin recording its worst monthly candle since August 2023. The Federal Reserve was previously predicted to implement at least three rate cuts this year.
