The Fed announced its interest rate decision today. It kept the rate steady. Afterwards, Fed Chairman Jerome Powell made statements. We look at the explanations and how they affect the Bitcoin price.
Statement by the Fed Chairman
Fed Chairman Jerome Powell announced that they are strongly tied to 2% inflation. He also pointed out that almost all policy makers approve of a few additional rate hikes this year. On the other hand, he emphasized that the full effects of the tightening policy have not been felt yet. Powell assesses that without price stability nothing would be beneficial for anyone in the economy. On the other hand, Powell emphasized that some signs show that supply and demand in the labor market are in balance. However, he stated that the demand for labor still significantly exceeds the supply of workers.
Powell says inflation has calmed down a bit. However, inflation pressures remain high. He points out that they have a long way to go to bring inflation back to the 2 percent target. He emphasizes that they see the effects of policy tightening in housing prices and investments. He states that they decided at the meeting that it would be a good idea to keep the interest rate constant. Powell emphasizes that they will continue to make decisions based on economic data from meeting to meeting. Pointing out that the steps they took are for the citizens, Powell points out that they decided to slow down a little while approaching the end of the road. He also pointed out that there is no opinion for future meetings.
Gold, Bitcoin and Dollar after Powell’s statements
Everyone is focused on Gold, Bitcoin and the dollar after Powell’s statements. Bitcoin, the flagship of cryptocurrencies, is moving steadily after the announcement. When we look at the price of Bitcoin while writing the article, we see that BTC is trading at $ 25,926. Accordingly, Bitcoin has given a neutral reaction to the interest rate decision.
When we look at the gold price as Kriptokoin.com, the ounce price of gold is trading at the level of $ 1,950. On the other hand, when we look at the dollar index, we see that there is some decrease. Accordingly, the dollar index has dropped to the level of 102. The FED took an approach that suspended interest rate increases. however, we will see clearly in July whether there will be an increase in the next period. The market expectation is that there will be an interest rate hike in July. However, let us state that the situation will become clear before the meeting in July. At this point, we should not forget Powell’s emphasis that there will be two more increases. All eyes will now be on the meeting in July. We’ll wait and see.
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