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Every statement by the Chairman of the Federal Reserve System, Jerome Powell, is watched by the financial markets with special attention. Indeed, during his latest intervention yesterday, September 30, 2024, Powell expressed measured optimism about the Fed’s ability to bring inflation back to its 2% target. This prospect could be the catalyst for a major new rally in the crypto market.
Jerome Powell and the return of inflation to 2%
During the 66Thursday At the NABE (National Association for Business Economics) annual meeting, Jerome Powell reaffirmed his confidence in the Fed’s ability to bring inflation back to its 2% target. “We are confident that inflation is on a sustainable path to our target,” he said. He also specified that although the labor market remains strong, its gradual cooling over the past two years does not require further immediate interventions. Powell thus tempered expectations of further rate cuts, clarifying that any decision would depend on future economic data.
These statements are particularly important in the context of the US economy, which is showing signs of resilience despite concerns about inflation. He stressed that the path to controlled inflation remains difficult to predict with certainty and reiterated the Fed’s commitment to adjust monetary policy based on changing data. A further rate cut by the end of the year is not out of the question, but it will depend mainly on the upcoming inflation reports.
The crypto market and the prospects for an imminent rally
Although Powell did not promise another rate cut for 2024, the crypto market remains optimistic. A global policy of monetary easing, especially in China, could benefit cryptocurrencies. If the economic data remains favorable, we could see a recovery, especially with the bullish history of the fourth quarter.
Historically, the months of October to December are often marked by significant gains in the crypto market, and this year could well follow that trend, especially with these cautious statements from Powell on monetary policy.
Jerome Powell’s optimism about reducing inflation combined with a global environment conducive to monetary easing appears to provide a favorable backdrop for a crypto rally. As investors eagerly await further economic indicators, the flagship cryptocurrencies could well ride this wave and reach new highs by the end of the year. However, caution remains as always due to the volatility of cryptocurrencies.
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A graduate of Sciences Po Toulouse and holder of the blockchain consultant certification issued by Alyra, I joined the Cointribune adventure in 2019. Convinced of the potential of blockchain to transform many sectors of the economy, I made a commitment to raise awareness and inform the general public about this ever-evolving ecosystem. My goal is to enable everyone to better understand blockchain and take advantage of the opportunities it offers. Every day I try to provide an objective analysis of current events, decipher market trends, convey the latest technological innovations and put into perspective the economic and social problems of this ongoing revolution.
DISCLAIMER OF LIABILITY
The comments and opinions expressed in this article are solely those of the author and should not be considered investment advice. Before making any investment decision, do your own research.