Jerome Powell Optimistic On Cooling US Inflation, Bitcoin Rally Imminent?

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As a seasoned market observer with over two decades of experience under my belt, I find Jerome Powell’s recent statements at the 66th NABE annual meeting intriguing. His confidence in the US economy and his cautious approach towards further interest rate cuts this year are reflective of an experienced hand guiding monetary policy.

At the 66th NABE annual meeting, Jerome Powell, the Federal Reserve Chair, emphasized a soft approach towards reducing inflation to their goal of 2%. He also suggested that any further interest rate reductions this year would depend on future inflation figures. This is noteworthy because the Fed’s quantitative easing actions may impact Bitcoin prices.

Jerome Powell Is Confident That They Can Bring Inflation To 2%

At the 66th NABE annual gathering, Powell expressed optimism that inflation will steadily decline towards their desired 2% rate. Additionally, he conveyed a sense of assurance about the robustness of the overall U.S. economy.

The US economy’s health may appear robust at first glance, but there are concerns about the strength of the job market. However, the chair of the Federal Reserve has assured us that the job market is stable, having calmed down from its turbulent state two years ago. He also mentioned that they don’t feel the need to see further stabilization in the job market to be certain they are on course to reach their 2% inflation goal.

Simultaneously, Jerome Powell implied that the Federal Reserve has no immediate plans to reduce interest rates any more in 2021. Previously at the September FOMC meeting, he had indicated a possibility of two additional 0.25% reductions this year.

As a crypto investor, I’ve been closely following the recent remarks by Jerome Powell. In his latest speech, he cautioned that future rate cuts this year could hinge on the emerging inflation figures. He emphasized that they would be continuously evaluating the health of the US economy at each meeting. The upside is that Powell appears optimistic about the economy’s trajectory. Moreover, he assured us that if the inflation data shows positive trends, they won’t hesitate to lower interest rates accordingly.

According to Powell, a possible extra 0.5 percentage point reduction in interest rates could occur this year if the given inflation figures turn out to be beneficial. This sentiment is shared by Federal Reserve’s Raphael Bostic, who has indicated that he may advocate for another 0.5 percentage point cut during the same period.

Will The Bitcoin Price Continue To Rally

As a crypto investor, I find myself encouraged by Jerome Powell’s reluctance to promise further interest rate cuts this year. Despite this, Bitcoin’s price maintains a bullish trajectory and could potentially continue its upward trend. The insightful QCP Capital firm hinted at global monetary easing policies, particularly from countries like China. They believe that Bitcoin, being a risk-on asset, is likely to gain from such economic strategies. Additionally, with the fourth quarter approaching, historically a period of strong returns for Bitcoin, I am optimistic about its potential performance.

Additionally, it appears that Bitcoin could end the month of September with a positive trend. Interestingly, when this occurs historically, Bitcoin tends to continue closing in the green for the following months, including October, November, and December. Consequently, there’s an expectation that the price of Bitcoin might continue its upward momentum into October.

Jerome Powell Optimistic On Cooling US Inflation, Bitcoin Rally Imminent?

10x Research’s Markus Thielen forecasts that Bitcoin might regain the $70,000 mark within the next fortnight, and if it does, he anticipates it could set a fresh record high by end of October. QCP Capital proposes that for Bitcoin to hit new peaks, it must first surpass the $70,000 barrier.

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2024-09-30 22:10