According to the latest report, Federal Chairman Jerome Powell said that the federal agency should not wait for 2% inflation to cut interest rates, following the Federal Open Market Committee (FOMC) vote to keep interest rates unchanged at 4.25-4.50% on Wednesday.
The steady interest rate has not influenced the crypto market at all, however, Powell’s statement has created a bullish wave, according to some analysts on social media.
JUST IN: 🇺🇸 Fed Chair Jerome Powell says we don’t need to wait for 2% inflation to cut interest rates.
— Watcher.Guru (@WatcherGuru) January 29, 2025
Cryptocurrency has often been portrayed as the hedge against inflation, lower interest rates, and currency devaluation. High interest rates push investors away from risky assets like crypto, while lower interest rates attract them back in.
Fed Chair Jerome Powell indicated that future rate adjustments will be contingent on incoming data, labor market trends, and inflation developments.
The federal chairman also revealed that the change in the future rate will depend on the economic conditions, incoming data, labor market trends, and inflation developments. During the speech, Powell stated that he is expecting to see progress on Inflation.
As of January 2025, the inflation rate in the US is 2.9% for the 12-month period. This is slightly higher than the previous month’s rate of 2.7% and declining since 2022.
Banks are Perfectly Able to Serve Crypto Customers: Jerome Powell
There’s good news for crypto lovers, as Jerome Powell indicated the wider integration of cryptocurrencies in the banking sector. He stated that “banks are perfectly able to serve crypto customers as long as they understand it can manage risk” and ensure safety.
The statement is crucial for those eagerly waiting for crypto services on the traditional banking infrastructure. With this integration, cryptocurrencies can transform the banking industry, from cross-border payments to crypto trading.
Also Read: Robinhood Markets Rolls Out Bitcoin, Crypto Futures Trading
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