Jrome Powell, Chair of the US Federal Reserve, continues to express optimism about achieving the inflation target of 2%.
During the 66th NABE annual meeting, he indicated that any further interest rate cuts this year would rely on upcoming inflation data, emphasizing the potential impact of the Fed’s quantitative easing on Bitcoin prices.
Powell affirmed the Fed’s belief that inflation is on a steady decline towards the 2% goal, while he described the overall health of the US economy as strong. Although there have been concerns regarding the labor market’s stability, he reassured attendees that it remains robust, having stabilized from past volatility. He stated that additional cooling in this sector isn’t necessary for confidence in reaching the inflation target.
While Powell hinted that the Fed is not rushing to cut interest rates this year, he acknowledged that favorable inflation data could lead to a 50 basis point rate cut, echoing sentiments from Federal Reserve’s Raphael Bostic. This cautious approach to interest rate adjustments indicates a careful monitoring of economic conditions.
Despite the uncertainty regarding further rate cuts, Bitcoin’s outlook remains positive. QCP Capital has noted that global monetary easing, particularly in nations like China, could benefit Bitcoin as a risk-on asset, especially as it enters a historically strong fourth quarter. September appears to close positively for BTC, which has historically preceded strong performance in the following months.
Mike Novogratz, the CEO of Galaxy Digital, recently highlighted a new potential catalyst for Bitcoin’s price growth.
Cryptocurrency expert il Capo of Crypto has revised his outlook in light of Bitcoin’s recent downturn and the sluggishness in the broader market.
Franklin Templeton Investments, a trillion-dollar asset manager, has proposed a Bitcoin and Ethereum index exchange-traded fund (ETF) to the U.S. Securities and Exchange Commission (SEC).
Thomas Barkin, President of the Richmond Fed, emphasized the importance of monitoring economic indicators and inflation trends to guide future interest rate adjustments.