As the article was being prepared, BTC prices continued to fluctuate, and Fed Chairman Powell made statements. The latest PPI data was not in favor of cryptocurrency investors. The Fed, which is starting to fail in its fight against inflation, may now need to create a clearer roadmap.
Fed Chairman’s Statements
Powell made important statements following the latest data. His assessments before tomorrow’s inflation data are highly significant. The decline in inflation has stopped, creating a worrying scenario for investors. Some members are hinting that more tightening might be necessary.
The Fed Chairman said;
“The US continues to benefit from strong pandemic intervention. We see that staying at the current policy rate for a longer period is becoming our main issue. We have seen a significant decrease in the demand for workers, and you also see that wages have fallen. I think this tells you that the policy is probably restrictive. It may take a long time for the institution to gain trust in the fight against inflation and to be convinced of a decline”.
Powell‘s current stance of staying restrictive for a longer period rather than further tightening is positive. In other words, both options are bad for crypto, but Powell is choosing the less bad one.
