Key Takeaways
Inflation is currently higher than the Federal Reserve expected, a tendency that will likely continue for the coming months confirmed Powell.
The market hasn’t reacted strongly to the news as Bitcoin continues to hover around $40,000.
Powell expect the Delta variant to have lower implications on the state of the economy than previous waves.
Share this article
During the highly-expected Federal Reserve meeting on Wednesday Afternoon, Chair Jerome Powell confirmed that inflation was set to continue for the dollar, perhaps even more than previously expected.
Inflation Set to Continue
Good news for the crypto markets came out of the latest Federal Reserve meeting as Federal Reserve Chair Jerome Powell confirmed that inflation could turn out the be higher and more persistent than expected. However, the Fed still expects to be able to curb that number back down to their 2% objective.
“Inflation is running well above our 2% objective, and has been for a few months, and is expected to run certainly above our objective for a few months before we believe it’ll move back down toward our objective. The question of whether we’ve met that objective, formally, is really one for the committee to make,” Powell said.
As the crypto market expected the news, Bitcoin hasn’t had a clear reaction to these recent announcements. Bitcoin is still hovering around $40,000 as the market confirms its recent bullish tendency.
Higher inflation is an upward catalyst for the price of Bitcoin due to the crypto asset’s status as a hedge against such inflation. In addition, the dilution of the dollar reduces the most widely-used denominator often compared to Bitcoin.
Nevertheless, investors were particularly wary of potentially bad news in the Fed meeting that could derail Bitcoin’s current upward trajectory. While Powell recognizes that inflation is currently above the Fed’s prediction, that isn’t enough to cause a change in the US monetary policy as of yet.
Answering those who believe the Delta variant of Covid will have a similar effect on the economy than the first wave in March 2020, Powell answered:
“With successive waves of Covid over the past year and some months now, there has tended to be…less in the way of economic implications from each wave, and we will see whether that is the case with the Delta variety.”
Disclaimer: The author held ETH at the time of writing.
Share this article
The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.
You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.
See full terms and conditions.
Bitcoin Remains Bullish After Shaking on Amazon Rumors
Volatility has struck Bitcoin after a prolonged stagnation period. Although the recent price action was based on a rumor, on-chain data shows that Bitcoin has the buying pressure behind it…
Bitcoin Hovering Below $40,000 Ahead of Fed Meeting
Bitcoin has taken an attempt to break $40,000 for the second time this week, with the Fed’s FOMC policy meeting acting as a source of uncertainty. Bitcoin’s Positive Consolidation around…
“Be Right, Not First,” Says Fed Chairman Powell on a Digit…
“We have not made a decision to issue a CBDC,” said Fed Chairman Jerome Powell in his speech during today’s International Monetary Fund (IMF) event devoted to the cross-border payments….
What is Impermanent Loss and How can you avoid it?
DeFi has given traders and investors new opportunities to earn on their crypto holdings. One of these ways is by providing liquidity to the Automated Market Makers (AMMs). Instead of holding assets,…
Be the first to comment