The president of the Fed reiterated that he will maintain the restrictive tone until inflation drops to 2%. Cryptocurrencies celebrated Powell’s statement; rose between 3 and 5%, while Ethereum rose as much as 5.66%.
The president of the United States Federal Reserve (Fed), Jerome Powell, announced that he will reduce interest rate hikes starting at his next meeting on December 13 and 14, after four systematic increases of 0.75 percentage points.
The statements came to place during a presentation made by Powell before the Brookings Institution think tank in Washington, where the main executive of the Fed shared a part of what the agency has been doing, as well as the measures they are considering taking for the future.
Powell warned that the fight against inflation was still far from over and that there is still no clarity on the level to which interest rates will rise and for how long they will be maintained.
Powell revealed that he will moderate his monetary policy, although interest rates will remain high “for a while” to contain inflation. His statements were celebrated by the market, as the Dow Jones, Nasdaq, and S&P 500 gained 2.18, 4.41, and 3.09%, respectively.
Market Anticipation: Expectations for Powell’s Speech
It is timely to remember the jump in futures markets, in anticipation of Powell’s speech, with futures for the Dow Jones Industrial Average rising 38 points or 0.14%. Meanwhile, futures for the S&P 500 and Nasdaq 100 rose 0.2% and 0.4%, respectively.
Crypto markets seem even more positively biased to the Fed Chairman’s comments; for example, Bitcoin rose more than 2% in the last 24 hours, while Ethereum saw an increase of almost 4%. XRP. Dogecoin and Cardano also posted gains of 1.5%, 1%, and 0.85%, respectively.
In this anticipatory scenario, the overall cryptocurrency market capitalization rose 1.7% to $888 billion.
Cryptocurrencies Maintain Positive Streak
In addition, Powell reiterated that monetary policy will continue to be restrictive until the interest rate falls to 2%. Meanwhile, cryptocurrencies rose between 3 and 5%, Bitcoin passed the floor of $17,000 and Ethereum rose 5.66% to $1,300.
“It is likely that restoring price stability will require keeping policy tight for some time. History strongly cautions against premature relaxation of policy. We will stay the course until we finish the job.”
Before Jerome Powell’s speech, cryptocurrencies predicted an announcement to reduce interest rate increases. Bitcoin is up more than 2% in the last 24 hours, while Ethereum saw an increase of almost 4%. XRP, Dogecoin, and Cardano also posted gains of 1.5%, 1%, and 0.85%, respectively.
Meanwhile, the overall cryptocurrency market capitalization rose 1.7% the day before to $888 billion.
By Audy Castaneda
