Summary

The US Federal Reserve is prepared to raise interest rates further if needed, according to Fed Chair Jerome Powell. In an address at the Federal Reserve Bank of Kansas City’s Economic Policy Symposium, Powell stressed the importance of bringing inflation down and stated that the Fed would keep interest rates low until inflation is sustainably trending towards their 2% target. Market participants are currently 78% certain that the next meeting of the Federal Open Market Committee will not result in rate hikes.

Introduction

In an effort to combat inflation, Fed Chair Jerome Powell has indicated that the US Federal Reserve is willing to implement additional interest rate hikes, if necessary. Powell’s remarks were made during his speech at the Federal Reserve Bank of Kansas City’s Economic Policy Symposium. With ongoing economic uncertainty, investors were eager to hear the Fed Chair’s perspective on the long-term economic outlook.

Main Points

• The US Federal Reserve is prepared to raise interest rates further if needed to address inflation.
• Fed Chair Jerome Powell emphasized the importance of bringing inflation down and keeping interest rates low until inflation is sustainably trending towards the Fed’s 2% target.
• Market participants are currently 78% certain that the next meeting of the Federal Open Market Committee will not result in rate hikes.
• Bitcoin’s price briefly spiked following Powell’s speech but later dropped to $25,820. If the current support level around $25,660 is broken, severe selling pressure is expected.
• The trading volume for Bitcoin has declined by 12.85% in the last 24 hours.

Conclusion

The US Federal Reserve remains committed to addressing inflation and is prepared to implement additional interest rate hikes if necessary. Market participants are cautiously monitoring the outlook for rate hikes, with the next meeting of the Federal Open Market Committee scheduled for September 20, 2023. In the cryptocurrency market, Bitcoin experienced some volatility following Powell’s speech, but its price has since declined and may face further selling pressure if the current support level is breached.