Jerome Powell
The S&P 500 and Nasdaq Composite gained 1.2% and 1.7%, respectively, while bitcoin and ether inched their way into the green
The US labor market added more jobs than expected in January, leaving analysts and investors doubting that an interest rate cut will come in March
Markets dipped during Powell’s Wednesday press conference but recovered Thursday to around pre-rate decision levels
The Fed opts to hold rates for a fourth consecutive time, citing high job openings and slightly improving inflation
Global bank leaders say a recession is unlikely, but persistent inflation may lead to rate hikes
Bitcoin soared to around $31,230 Friday afternoon in New York for the first time since April
The central bank head appeared before lawmakers Wednesday to defend his monetary policy
Crypto moved further in the green while stocks went red — analysts say institutional interest and increased risk appetite are to blame
eToro’s Callie Cox noted that bitcoin has led the stock market “in seven of the last 10 Fed days”
Interest rates could end up “higher than anticipated,” the central bank chief said on Capitol Hill, Tuesday
The Nasdaq Composite and S&P 500 indexes rose as much as 1.4% and 1.1%, respectively, during Powell’s interview
The central bank raised interest rates by 25 basis points — that’s not surprising — but all eyes are on the subtext
If Powell and the committee signal a forthcoming pause in interest rate hikes, markets will react favorably, but a hawkish stance will likely send shares plummeting again
The hike marks the Fed’s seventh consecutive rate increase, a strategy it hopes will curb the highest inflation the country has seen in more than four decades
The S&P 500 and Nasdaq Composite indexes both gained about 1% and 1.5% in the moments following Powell’s speech
The Fed’s forward guidance statement did not provide clarity about what December might bring
Investors seem confident that the central bank will continue its rate hikes this week with a 75 basis point increase announced Wednesday, followed by 50 basis points in December
The regulator is particularly concerned about stablecoins, volatility and crypto token classification
Powell was guarded when asked about what might come in November — markets are still betting on a 75 bps increase at the next FOMC meeting
The S&P 500 and Nasdaq were trading 2.3% and 2.8% lower, respectively, at time of publication, while bitcoin and ether similarly lost 4% and 7%, respectively
Following Powell’s speech, markets predict chance of a 75 basis point September rate hike is slightly lower compared to earlier in the week
Both crypto and equities markets have taken a breather as investors wait cautiously for central bankers to gather at Jackson Hole.
Futures markets are now pricing in a 53% chance of a 50 basis point hike and a 48% chance of a 75 basis point hike in September
The Fed has kept an eye on labor statistics in recent months with the hopes of gauging the odds of a recession
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