US Fed’s Jerome Powell: Interest Rate May Not Need To Rise

Anvesh Reddy
May 19, 2023
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Will Bitcoin Price Hit $100K Ahead of Powell's Testimony on Tuesday?

Crypto Market News: U.S. Federal Reserve Chairman Jerome Powell said the overall banking system in the country is strong and resilient. He said liquidity support was provided to banks as and when needed without compromising on the US Fed’s monetary policy. Powell added that the credit stress may be having an impact on rate hike plans:

“The tools to maintain financial stability are likely to weigh on economic conditions, hiring and inflation. So, as a result, our policy rate may not need to rise as much as it would have to achieve our goals.”

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Powell Warns About Further Market Shocks

Jerome Powell said the markets will be facing the dilemma about future market shocks for a ling time and that it will be hard to predict them. The Fed Chair was speaking at a panel discussion on the “Perspectives on Monetary Policy” before the Thomas Laubach Research Conference hosted by the Federal Reserve Board of Governors on Friday. The discussion happened amid a mixed expectation in the crypto market about whether the US Fed would pause or maintain a hawkish pause in the June 2023 FOMC meeting.

Also Read: Will Central Banks Utilise XRP Via Ripple’s CBDC Platform?

However, recent comments from the central bank officials sided more towards further raising interest rates. Meanwhile, the Bitcoin price reacted positively to Powell’s initial remarks. On the other side, the CME FedWatch Tool’s target rate probabilities for the 14 June 2023 show a 69% possibility of a rate hike pause.

Ben S. Bernanke, former Fed Chair and the 2022 Nobel Memorial Prize recipient, also participated in the panel discussion. He spoke about the recent crisis around US regional banks. Referring to the Silicon Valley Bank collapse, Bernanke emphasized on the market contagion that led to the bank withdrawals, causing a widespread financial impacts on the US economy. In that respect, I think it was similar to the Global Financial Crisis, he added. He said that overall, borrowers are in a much better shape in the recent crisis unlike the global financial crisis.

Also Read: Bitcoin News: Whales And Miners Offload Huge BTC Ahead Of Fed Chair Powell Speech

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Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
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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.

About Author
About Author
Anvesh reports major crypto updates around U.S. regulation and market moving trends. Published over 1400 articles so far on crypto and blockchain. A proud dropout of University of Massachusetts, Lowell. Can be reached at [email protected] or x.com/BitcoinReddy or linkedin.com/in/anveshreddybtc/
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.