A week after giving the post-FOMC press conference, US Fed Chairman Jerome Powell talked in an interview with Carlyle Group co-founder David Rubenstein at the Economic Club of Washington, DC, on Tuesday. The US Bureau of Labor Statistics announced massive job growth to the economy last week following the Fed's 25 basis point rate hike, reducing the unemployment rate in the nation to its lowest level in fifty years.
Powell's remarks elicited a calm response from the cryptocurrency market, which may eventually find further macro-led support when inflation declines as anticipated later in 2023. When asked about the strong jobs report, the Fed Chair chose to make a neutral statement rather than the dovish remark that the markets had anticipated. The impact of the Fed Chair's remarks on cryptocurrency values in the next hours will have to wait, though. The price of BTC increased by almost 0.50% in the previous hour.
Main Points From Powell's Address Today
🔸When asked if a 3% target was desirable, the Fed Chair responded that the goal of getting inflation down to 2% will remain. Thus, the policy could be tightened further until the 2% target is reached.
🔸Powell predicted that there would be a large drop in inflation in 2023, which is positive news for the cryptocurrency market.
🔸The disinflationary process, however, is probably going to take longer than anticipated. If the statistics continue to come in stronger than anticipated, according to Powell, the Fed will undoubtedly raise rates further.
🔸Although inflation in the goods sector is declining, it is still not evident in the housing sector, raising doubts about the prospects for disinflation.
🔸He responded that the Fed primarily considers the supply and demand link with the United States when determining whether the economy is in control of inflation and the geopolitical situation with the Ukraine crisis.
🔸In response to worries that the economy would face a debt default, Powell stated that Congress is the one who determines what the debt ceiling should be set at.
🔸In an interesting admission, Powell said he earns $190,000 as the head of the Federal Reserve System's board of governors.
