Crypto Rally Earnings? American inflation is slowing, says Jerome Powell
Federal Reserve Chairman Jerome Powell said at the annual meeting of the National Association of Business Economists (NABE) in Nashville that the US economy is in good shape and has shown significant improvement over the past two years. However, inflation, which had been a major concern, has now cooled and is now giving more confidence that the Fed is on track to meet its 2% target.
Two more price cuts this year, Powell said
Powell said the Fed would be in no rush to cut interest rates significantly to achieve its goal. Instead, they can move lower rates in small increments. The Fed chairman also indicated that there could be two more rate cuts of 25 basis points (bps) this year. Powell's slow pace is to balance economic growth without causing inflation or other risks.
However, the future price reduction depends on the upcoming inflation data. During the meeting, the Fed said that it will review the economic situation at each meeting, which shows Paul's confidence about the direction of the economy. Meanwhile, Powell confirmed that if inflation data shows continued improvement, the Fed will not hesitate to cut interest rates further to support economic growth.
An overview of the Crypto market
Powell's optimism during the meeting could benefit the crypto market. However, currently, the market is not seeing any price increase in any of the major cryptocurrencies including Bitcoin (BTC), Ethereum (ETH) and Binance Coin (BNB). According to CoinMarketCap data, BTC, ETH and BNB have seen price declines of more than 3.5%, 2.2% and 4.35% respectively in the last 24 hours.
This decline in prices is not due to the recent Fed meeting, but due to the ongoing pessimism among traders and investors.
Despite the bearish market sentiment, the Crypto Fear and Greed Index currently stands at 61, indicating greed in the market. Furthermore, it has been steadily growing since the beginning of September 2024.
