Federal Reserve Chairman Jerome Powell made critical statements in a recent press conference. Powell signaled that interest rate hikes could continue, emphasizing that inflation, although showing a downward trend in recent periods, still remains at high levels compared to the 2% target. He also underscored that monetary tightening policies may continue for the Federal Reserve to reach its inflation target.
After Powell’s statements, expectations for further interest rate hikes strengthened in the markets. The focus in the markets turned to critical US data following Powell’s remarks.
Markets Turned Their Attention to Critical US Data
Following Federal Reserve Chairman Jerome Powell’s statements, the markets turned their attention to critical indicators, especially inflation data. The August ADP Nonfarm Employment Change and the second-quarter Gross Domestic Product (GDP) were just announced, both of which are important indicators affecting the Federal Reserve’s interest rate decision. The ADP Nonfarm Employment Change and the GDP came in below expectations.
- US ADP Nonfarm Employment Change (August) Reported: 177K (Expectation: 195K Previous: 324K)
- US Q2 Gross Domestic Product (GDP) Reported: 2.1% (Expectation: 2.4% Previous: 2.0%)
Following the release of the data, there was no significant price movement in the cryptocurrency market. The leading cryptocurrency Bitcoin (BTC), which gained more than 5% in the last 24 hours, started trading at around $27,300 at the time of writing. The total market capitalization of the cryptocurrency ecosystem has risen to $1.09 trillion according to CoinMarketCap (CMC) data.
