Federal Reserve Chairman Jerome Powell on Tuesday again returned to the delicate action of balancing the central bank, emphasizing that policy manufacturers are trying to navigate between their price stability and job mandates following the cutting interest over the past week.
“Recent data shows that the speed of economic growth has been changed,” Powell said in ready Reminders At the Greater Providence Chamber of Commerce’s Economic Outlook Luncheon on Rhode Island, adding:
Unemployment rate is low but edits. Those who got the job slowed down, and the downside risks at work were rising. At the same time, inflation has increased recently and remains relatively raised.
He added that clearer trade policy means that tariffs are likely to trigger only a “one-time pass-through” impact on inflation. That can be interpreted as a slight move from earlier Warnings Those tariffs can fuel more prolonged cost pressure in the second half of the year.
His comments shout out to vice chairman Michelle Bowman, who said The Kentucky Bankers Association’s annual convention on Tuesday: “The US economy is elastic, but I am concerned about weakening the labor market conditions and softer economic growth.”
Powell warned With no risk path for interest rates, with elevated inflation on one side and increasing unemployment on the other line. He suggested, however, that the Fed is more likely to prioritize the mandate at work.
The The Federal Open Market Committee (FOMC) voted Last week to lower interest rates by 25 points basis – the first cut to nine months and a move that markets widely expected. While Powell refused to comment on the possibility of another reduction in October, the expectations were high as the fed was cut off at its last two meetings of 2025.
DBS Bank in Singapore described Fed’s latest meeting as riddle to “dissonance and contradiction,” citing inconsistencies between the economic projections of Powell’s policies and statements.
The bank noted that officials have foorecast faster GDP growth and lower unemployment, even though they recognize “dangers of collapse at work.”
Related: Bitcoin’s struggles with $ 113k as Fed’s bowman’s Bowman hints on faster rate cuts
Bitcoin, crypto markets under pressure
The expectations of further financial exercise have raised risk assets widely, but crypto markets face fresh sales pressure to start the week.
The difference -Irs between Bitcoin (Btc) And the equals are that the commentator of the market has dropped the Kobeissi letter, pointing to the expansion of gaps in many classes.
Analyst Heisenberg added that Bitcoin’s broad variation from Nasdaq is likely to convert again, citing historical trends-a signal that BTC can bounce quickly in accordance with the recent NASDAQ high hours.
Other indicators suggest Bitcoin correction may prove short. Coinhares reports Monday that Funds exchanged by Bitcoin Exchange Attached $ 977 million in the past week, the total crypto flow to $ 1.9 billion -a sign of long -term institutional demand even Income margins remain under pressure.
Economist Timothy Peterson said to the cointelegraph That crypto trajectory may climb higher once investors understand the size of the Fed policy transfer.
“There has never been a gradual reduction in rates as it is currently thought,” he said, adding that any sign of more aggressive emergency could “jolt bitcoin and altcoins greatly.”
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