Hi HODLers, Hiveans and Lions,
FOMC passed and... Stock and Crypto markets liked it!
In a nutshell and despite recent high inflation and job creation numbers, the FED reiterated that it still sees 3 rate cuts in 2024. Over the past two weeks, some investment banks and analysts were speculating that we might have less or even a small hike to fight inflation.
“We don’t really know if this is a bump on the road or something more. We’ll have to find out,” he said. “Here are some bumps. Are they more than bumps?”
What's interesting though, is that J.Powell clearly stated that the current interest rates are at their peak! Which means, it can only go down from here if things stay more or less the same on the economic front.
Federal-funds rate target
Some data do point to a slowing (soft landing?) economy
Wage growth has continued to slow, and unemployment has steadily inched up, from 3.4% last April to 3.9% in February.
Also let's not forget that elections are coming to the US in 2024. Democrats are worried that the high interest rates are sapping consumer sentiment and could weigh in the balance when voters hit the polls.
In any case it was received positively by $BTC
Up almost 8% over the past 24hours!
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Powell seems to be a in dichotomy with respect to numbers, and that largerly decoded as dovish statement and that gave fresh imeptus to $GOLD and $BTC....$GOLD continues to refresh ATH post FOMC.
Yup! We need to keep going though! Higher and higher!
Honestly pretty wild since inflation continues to rise. I think they are in a shit storm and don't have much of a choice. The USD value is falling dramatically. I mean in just 5 years time the price of a house has doubled if not higher! It's legit madness and why I'm all crypto now.
Indeed... Hard to tell how this is all going to end up...