Speaking at the 66th NABE meeting, Jerome Powell emphasized that further interest rate cuts would depend on upcoming inflation data.
Jerome Powell, the chair of the Federal Reserve in the United States, has maintained a dovish position regarding the possibility of bringing inflation down to their goal level of 2%.
Jerome Powell Is Confident That They Can Bring Inflation To 2%
Powell also dropped a hint that any additional potential rate cuts this year would be based on the incoming inflation statistics while he was addressing the 66th annual meeting of the National Association of Bank Executives (NABE). This new development is significant because the Federal Reserve’s quantitative easing (QE) efforts will have a significant impact on the price of Bitcoin.
During the 66th annual meeting of the National Association of Bank Executives (NABE), Powell expressed his confidence that inflation is on a path that will allow it to drop to their objective of 2%. He went on to say that they are confident in their belief that the US economy is robust in general.
The labor market is one of the areas that has given rise to fears that the United States economy might not be as robust as it appears to be. On the other hand, the chair of the Federal Reserve noted that the job market is stable, particularly after having stabilized from its chaotic position two years ago.
He also stated that they do not need to observe further cooling in the labor market to maintain confidence in their ability to meet the 2% inflation target. In the meantime, Jerome Powell has indicated that the Federal Reserve is not in a hurry to reduce interest rates further at this time in the year.
The Chair of the Federal Open Market Committee (FOMC) had said at the meeting in September that there will be two additional rate reductions of 25 basis points (bps) this year.In his latest address, he warned that inflation data will determine whether rates will fall further this year.
He stated that they would proceed with meeting-by-meeting evaluations of the United States economy. The fact that Jerome Powell is certain that the economy is moving in the right direction is a positive development.
He further stated that they will not be reluctant to reduce interest rates in the event that the data on inflation is good.If the inflation numbers are good, Powell could implement a further reduction of fifty basis points (bps) in the interest rate this year. The Federal Reserve’s Raphael Bostic, who alluded to the possibility that he would prefer another 50 basis point decrease this year, is in agreement with this.
Despite the fact that Jerome Powell did not make any statements suggesting that there would be additional rate cuts this year, the price of bitcoin continues to indicate a bullish view and may continue its upward trend.
Given Bitcoin’s reputation as a risk-on asset, the trading firm QCP Capital recently made a reference to global monetary easing policies from nations such as China. They also stated that they expected Bitcoin to benefit from such efforts.
Coincidentally, as we approach the fourth quarter of the year, Bitcoin is poised to yield its highest returns. Furthermore, we expect Bitcoin to conclude September with a positive monthly close.
In the past, whenever something like that occurred, the flagship cryptocurrency also ended the months of October, November, and December in the green. Therefore, we anticipate that the price of Bitcoin will maintain its upward trend in October.
QCP Capital predicted that Bitcoin might need to break above $70,000 in order to reach new highs. Markus Thielen, the founder of 10x Research, said that Bitcoin might recoup $70,000 within the next two weeks. Additionally, Thielen forecasted that the flagship cryptocurrency will achieve a new all-time high (ATH) before the end of the month of October.
