The statements made by Fed Chairman Powell after the interest rate decision of the U.S. Federal Reserve (FED) last night brought a rise in Bitcoin price.
The FED announced the interest rate decision at 21:00 GMT. Approximately 30 minutes after the decision, FED Chairman Jerome Powell made statements, triggering a rise in all markets including Bitcoin.
Pointing out that the economy has made great progress, Powell noted that inflation is still very high. He expressed that the progress made in reducing inflation was not yet a guaranteed method, and the result of what will happen was uncertain.
Stating that the labor market continues to remain tight, Powell conveyed that the risks towards reaching the goals of employment and inflation are balanced.
“Probable” to Start Interest Rate Cuts
While mentioning that the recent rise in inflation has dampened their spirits, Powell stated that interest rate cuts at some point in the year are still probable:
We are neither going to overreact to this two-month data nor overlook it.
The FED still maintained its predictions for three interest rate cuts within this year. Powell said that the Federal Open Market Committee (FOMC) believes that cutting interest rates should not be appropriate before confidence in lowering inflation to 2% increases more.
Emphasizing that FED already knew that the FED’s 2% inflation target would be volatile, Powell said that they do not know whether they will face even more challenging situations at this stage.
According to CoinGecko data, parallel to these statements, the Bitcoin price started to rise again. Bitcoin, which had retreated to $60,500 levels yesterday morning, exceeded $67,000 overnight.
As of this writing, Bitcoin is trading at $66,946.
