The Fed Chair mentioned that the US economy is strong and able to withstand global challenges, which makes it less likely that interest rates will increase in the future.
Fed Chair Jerome Powell, during a Thursday address in New York, suggested that there might not be any more interest rate hikes in the current cycle of monetary tightening. This news has led to positive reactions in the crypto market, with cryptocurrency values increasing by 3% in the past 24 hours.
Fed Interest Rate Hike Verdict
Federal Reserve Chair Jerome Powell, as reported by the WSJ, suggested that if progress in controlling inflation continues and long-term Treasury yields stay high, the central bank might put a pause on its ongoing series of interest rate hikes. This aligns with what other central bankers have hinted at – keeping short-term interest rates steady in the upcoming meeting scheduled for October 31 to November 1.
Powell explained that uncertainties in the market have made it challenging to strike the right balance between tightening monetary policy too much or too little. Despite these complexities, he expressed confidence in the resilience of the US economy in the face of global challenges.
Powell also noted some positive signs like easing inflation and strong demand. While Wall Street didn’t react positively to Powell’s comments, the crypto market welcomed the news.
Crypto Market Celebrates
The overall cryptocurrency market has seen a 3% increase, with Bitcoin also making similar gains, up by 3.3% and aiming for the $30,000 mark. Notably, Bitcoin traders have been building long positions according to Bitcoin options data.
Altcoins have also enthusiastically joined the rally. A significant catalyst has been the latest developments in the XRP lawsuit, with the US SEC choosing to drop charges against Ripple executives on Thursday. This decision boosted the XRP price by over 8%, bringing it to $0.52.
Additionally, altcoins like Solana (SOL) have surged by 10%, signaling a strong breakout. Altogether, altcoins continue to present an attractive opportunity for investors, with the potential for substantial gains before the next major uptrend in the cryptocurrency market.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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