US President Biden talks about reducing inflation, which is the scourge of the US. According to experts, Bitcoin (BTC) could regain momentum if the Federal Reserve sticks to 25 basis points in light of Biden’s continued optimism about reducing inflation.
Biden’s decision to reduce inflation and hopeful!
US President Joe Biden stated that the US economy is ‘moving in the right direction’ after the positive employment report released by the Bureau of Labor Statistics to the public recently. As you follow on Kriptokoin.com, the report showed that 311 thousand new jobs were created in February, above the expectations of 205 thousand. Biden maintained his optimism that the Federal Reserve’s upcoming rate hikes are likely to be more gradual and less aggressive.
On Friday, Biden said in a speech at the White House that inflation in the country has fallen to 30% lower than last summer. While the US President hailed the nonfarm payrolls data as a “good jobs report”, he stressed that the economic plan prepared by Congress was working exactly as it should. In this regard, Biden emphasized the following statements:
I am happy to report that our economy created more than 300,000 new jobs last month. This is not a coincidence. Our economic plan is working.
Talking about the CPI data that will be released next week, Biden remained hopeful and pointed out that he is almost certain it will come out ‘solid’. The employment report helped dispel growing rumors that the Federal Reserve would raise interest rates by 50 basis points, in response to the Fed chair’s recent testimony at a hearing in the U.S. Senate. Instead, it provided signs that the recession is far from happening any time soon.
What does it mean for bitcoin price?
According to experts, this could be a major source of relief for risky assets like Bitcoin (BTC) and other cryptocurrencies. This is because the larger crypto market could witness an increase in momentum if the Fed sustains the previous 25 basis point rate increase. But an unexpected move by the Fed could cause even more distress in the already bearish market.
In light of the impending debate over raising the federal debt ceiling, Biden once again juxtaposed his economic strategy with that of the Republicans on Friday. He claimed that their ‘reckless language’ posed the greatest threat to the recovery of the US economy. Currently, Bitcoin is trading at the critical $20,000 level, down 4.1% on a daily basis. The leading cryptocurrency has lost more than 10% on a weekly basis.
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