Jerome Powell Financial News

The U.S. Federal Reserve's recent decision to maintain its key lending rate has surprised many, as it breaks the trend of rate hikes observed in the past year and a half.

Bitcoin fell nearly 3% on Thursday after the U.S. Federal Reserve signaled it would slow the pace of rate cuts in 2025. The cryptocurrency briefly dipped below the $100,000 mark, weighed down by Federal Reserve Chair Jerome Powell’s hawkish tone and comments on the potential of a Bitcoin reserve. While the Fed announced a widely expected 25-basis-point rate cut, its forecast of only two quarter-point reductions in 2025 was lower than the three or four cuts anticipated by markets. This reduced easing projection raised concerns among investors.

Asian stocks were mixed on Thursday in the wake of record peaks on Wall Street as a softer read on U.S. services data boosted investor confidence in the Fed lowering interest rates. The S&P 500, Nasdaq and Dow all notched record highs overnight and bitcoin, at times a barometer of the mood, was back within a whisker of $100,000.

Overnight data showed U.S. producer prices increased more than expected in April, indicating that inflation remained stubbornly high early in the second quarter.

Bitcoin declined on Thursday after the US Federal Reserve decided to maintain interest rates unchanged and its indication that rate cuts might be delayed. Additionally, Bitcoin's downward movement was influenced by a mixed launch of investment products tracking the world's top cryptocurrency and rival ether in Hong Kong.

Bitcoin’s tumble is piquing the interest of investors who view pronounced swings in the digital token as a possible precursor for broader changes in risk appetite in global markets. The cryptocurrency has shed about 4% in the past two days following a near 16% plunge in April, the worst monthly drop since Sam Bankman-Fried’s FTX digital-asset empire imploded in November 2022. The token changed hands at $57,359 as of 11:17 a.m. Thursday in Singapore, around a two-month low.

Jerome Powell (pictured), chair of the US Federal Reserve

While markets have begun pricing in rate cuts from key central banks in 2024, it is 'clear that higher interest rates are here to stay'.

The Fed's rate-setting committee said The committee said leaving rates unchanged would give the central bank to continue to assess additional information and its implications for monetary policy.

Today, Federal Reserve Chair Jerome Powell addressed critical economic issues facing the United States in a talk at the Economic Club of New York. 

'Perhaps the surprisingly resilient US economy is finally showing signs of slowing after a long rate hiking cycle.'

Fed chair Jerome Powell spoke at the Jackson Hole symposium last week.

Federal Reserve chair Jerome Powell hinted at further rises, adding that there was a “long way to go” before inflation might be completely vanquished.

The US Federal Reserve recently unveiled the FedNow Service system to facilitate instant payments; however, experts warn that the system might become a precursor to the infrastructure for a central bank digital currency (CBDC).

Minutes from the Federal Reserve’s most recent monetary policy meeting revealed an intent to increase interest rates further, which caused US equities stocks to drop in response.

Stray Dog Token (STRAY) has experienced a whirlwind of price action since its listing on June 20, surging an astounding 3,659% before retracing 60% and then trading sideways.

Federal Reserve Chairman Jerome Powell has made it clear that the central bank doesn't want to prevent crypto innovation but warned that the industry is still replete with fraud and risks. 

A “bloodbath” in risk assets, including the crypto market, could become a reality as Wednesday’s important Federal Reserve (Fed) meeting moves closer, one market strategist has warned.

The largest token was trading at 19,999 at 22.30 IST Sunday. That's after a two-day drop of 7.6%, moving in tandem with US stocks on Friday after Fed Chair Jerome Powell's speech at the Jackson Hole conference. The wider crypto market retreated Sunday, with the MVIS CryptoCompare Digital Assets 100 Index dropping 1% in its fourth straight day of declines. «Money is flowing out of risky assets. Crypto followed the sharp adjustment of the US stock market,» after Powell's remarks, said Cici Lu, CEO at Venn Link Partners. «Markets didn't like what he had to say and Bitcoin is resuming as a high-beta asset.» The $20,000 level acted as support for Bitcoin when it hit lows in recent months, but the cryptocurrency had worked its way higher in recent weeks. Before Saturday, it hadn't been below $20,000 since July 14, and had even crossed above $25,000 earlier in August.

Fed Chair Jerome Powell said on Friday, weighing in with generally positive remarks on a hot-button topic at the central bank that has left policymakers divided. «A U.S. CBDC (central bank digital currency) could… potentially help maintain the dollar's international standing,» Powell said in introductory remarks to a research conference held by the central bank on the international roles of the dollar. The Fed has just finished a four-month public consultation period soliciting opinions on the idea of a digital dollar. Fed Vice Chair Lael Brainard has emerged as a key supporter while Fed Governor Chris Waller has made the case against.