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Bitcoin price returned to $59,400 and has not yet reached its daily peak after falling to $57,700. With yesterday’s fluctuations, the price lost $60,000 but could regain this key threshold if the current trend continues in the coming hours. Fed member’s statements provide important clues about the current situation on the inflation and employment fronts.
Fed Statements and Crypto
Fed’s stance is crucial for cryptocurrencies, and there are still weeks until the September meeting. The final decision of the Fed will emerge after seeing the August data. However, following the latest data, the likelihood of a 100bp or higher cut has weakened. Perhaps the inflation data for August will come in below 3%, and the expected bold 50bp cut will occur.
Fed member Musalem is making statements as this article is being prepared, and the key points of his important speech are as follows:
- Recent data has reinforced my confidence in inflation.
- There are signs of cooling in the labor market, but layoffs remain low.
- The risk balance regarding inflation and the employment market has changed.
- The time for a change in policy rates may be approaching.
- The economy is growing very well; the data does not support the idea of a recession.
- I see GDP growth between 1.5% and 2% in the second half of this year.
- I do not foresee a recession in the next few quarters.
- The news about inflation over the last three months has been very encouraging.
- The risks of easing too early or too much could be costly.
