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Cryptocurrency Ecosystem => Bitcoin Forum => Bitcoin News & Updates => Topic started by: RSRS on July 30, 2021, 07:23:47 AM
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Before the important Fed report, the benchmark cryptocurrency had surpassed $41,000. Nonetheless, Bitcoin started struggling at $40,000 when the Federal Open Market Committee (FOMC) issued its policy statement, which was followed by a press conference led by the Fed’s chairman, Jerome Powell.
Why Bitcoin Is Seen Struggling At $40,000 after Jerome Powell’s Press Conference?
Fed policymakers kept their monetary policy unchanged at the end of their two-day policy meeting, as analysts predicted.
They observed that the US economy has made progress toward its maximum employment and inflation targets and that the Fed would continue to assess its stimulus program in the coming months.
Bitcoin investors have been keeping a close eye on how quickly the central bank would end its $120-billion-per-month bond-buying program. This is due, in part, to the benchmark cryptocurrency’s bull run from $4,000 to $65,000 in response to the Fed’s lax monetary policies.
Is It Better To Inflate Or Not To Inflate?
Powell has stated that the Fed’s asset purchases would continue until the US economy made “substantial additional improvement.”
However, the Fed’s news conference on July 28 was the first time it had to clarify what it considers “substantial additional progress.” Powell answered CNBC’s Steve Liesman’s inquiry by saying that it indicates solid labor figures and progress toward full employment.
Follow-up inquiries from reporters asked Powell to define the phrase “transitory,” which he and his office had regularly used in prior FOMC announcements to downplay worries about increasing inflation in the United States.
Powell spent at least two minutes responding to the unexpected line of questioning, emphasizing that inflation will grow in the short term but not year over year.
More Information (https://cryptonews.net/en/news/bitcoin/1228757/)