Breaking: Jerome Powell Says Uncertain How Economy Will Be Placed Next Year
Jerome Powell Speech: U.S. Federal Reserve chair Jerome Powell revealed economic projections on interest rates, unemployment, inflation and economic growth in his speech after the release of interest rate hike decision. The Fed chair said the labor market remains extremely tight with median projection for the unemployment rate rises to 4.6% by the end of next year. Also, the activity in the housing sector has weakened significantly.
He said the US economy slowed significantly from last year’s pace. A restrictive policy stance will likely be needed for some time, he added. Overall, Powell said a sufficiently restrictive policy stance is yet to arrive.
More Evidence Needed To Show Inflation Drop Is Sustained
Powell said the last two CPI reports showed a welcome reduction in the monthly pace of price increases. “It will take substantially more evidence to have confidence that inflation is on a sustained downward path.” Maintaining the previous stance of not loosening policy prematurely, Powell said the status quo on inflation will continue. Speaking about how the economy could places an year from now, the Fed chair said no one knows with any certainty where the economy will be.
“The historic record cautions strongly against prematurely loosening policy. We will stay the course until the job is done.”
Earlier, the Federal Open Market Committee (FOMC) announced a 0.50% interest rate rise. Stock markets and crypto prices reacted negatively despite the hike being on the expected lines. Meanwhile, Bitcoin (BTC) price stands at $17,946, up 1.27% in the last 24 hours, according to price tracking platform CoinMarketCap. The Fed hike announcement essentially nullified the gains BTC made earlier. At one point on Wednesday, the top cryptocurrency was trading at $18,300 range.
Also Read: What Is The Share Of Recent Binance Withdrawals Out Of Total Assets?
Explaining the decision, the committee said the repeat of ongoing rate increases are likely appropriate to return inflation to 2 percent, going forward. The FOMC said it is looking at achieving maximum employment and inflation at the rate of 2 percent over the longer run.
- Solana Price Rallies 5% as Nasdaq-listed VisionSys Launches $2B SOL Treasury Strategy
- XRP Ledger Rolls Out MPT Standard for Real-World Asset Tokenization
- SEC Puts Crypto ETF Approvals On Hold Following U.S. Government Shutdown
- Pi Network Adds DEX and AMM Features To Expand Pi Coin’s Utility
- October Fed Rate Cut Odds Rise After Weak U.S. Labor Data, Bitcoin Surges
- Cardano Price Forecast As Hashdex Listing Fuels Optimism For $1.27 Breakout
- BONK Price Rally Ahead? Open Interest Jumps as TD Buy Signal Flashes
- Shiba Inu Price to Surge as Whales Buy and Team Commits to Shibarium Growth
- XRP Price Prediction After Ripple CTO David Schwartz Resigns
- SUI Price Eyes $4.5 as Coinbase Futures Listing Sparks Market Optimism
- Chainlink Price Holds $20 Support Amid Tokenization With DTA Standard Progress – Is $47 Next?
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
