The post Bitcoin Price Reacts to Fed Chair Jerome Powell’s Remarks About Increasing Interest Rates appeared first on Coinpedia Fintech News
On Friday, Jerome Powell, the Chair of the US Federal Reserve, opened up about how the central bank is prepared to raise the benchmark rates even more. Bitcoin’s price went down a bit when Powell spoke strongly, but now it’s up a bit at $26,200. This makes sense because, before the Jackson Hole event, bitcoin’s price was going down because people expected Powell to talk about controlling inflation.
Powell said, “Our job is to reduce inflation to 2%, and we’ll do it.” He mentioned the Fed might make borrowing costs more if needed; the interest rate is quite high now. Powell added that even though inflation is better lately, there’s still a lot to do to control it.
When Powell started talking, stock values didn’t change much. The Dow Jones Industrial Average, S&P 500, and Nasdaq were all doing well.
Powell also added, “At upcoming meetings, we will assess our progress based on the totality of the data and the evolving outlook and risks.” He added, “Based on the assessment, we will proceed carefully as we decide whether to tighten further or, instead, to hold the policy rate constant and await further data.”
He added, “Although inflation has moved down from its peak — a welcome development — it remains too high. We are prepared to raise rates further if appropriate, and intend to hold policy at a restrictive level until we are confident that inflation is moving sustainably down toward our objective.”
Talking about Bitcoin’s price, it went down and is now below $26,000. In the past week, the price tried to go up from around $25,800 to $26,200, but it struggled to stay above $26,000. It seemed like it was getting stronger when it reached $26,400, but in less than a day, it fell back down to $26,000 on August 24.
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