Fed Chairman Jerome Powell Speaks in Sweden! Here’s Bitcoin’s First Reaction!

In his statement today, the Chairman of the US Federal Reserve (FED), Jerome Powell, emphasized that the central bank should stay away from political influences while fighting persistently high inflation.

In a speech at Sweden’s Riksbank, Powell stated that stabilizing prices requires making difficult politically unpopular decisions:

“Price stability is the foundation of a healthy economy and brings immeasurable benefits to society over time. But restoring price stability when inflation is high may require unpopular measures in the short term as we raise interest rates to slow the economy.

The absence of direct political control over our decisions enables us to take these necessary measures without considering short-term political factors.”

Powell’s statements were made at a forum where central bank independence was discussed, followed by a question-and-answer session.

After Powell’s speech bitcoin He responded with a slight rise:

Fed Chairman Didn’t Give Any Hints on Interest Rates

Powell’s speech did not contain any clues as to the policies ahead of the Fed. The FED had increased interest rates seven times in 2022, with a total increase of 4.25 basis points. In past statements, the FED announced that further rate hikes were on the way.

In another part of his speech today, he addressed calls by some lawmakers for the Fed to use its regulatory powers to address climate change. Powell stated that the Fed should “stay true to its job and not pursue societal benefits that are not strictly linked to its statutory goals and mandates.”

However, this year the Fed will launch a pilot program that envisions six of the country’s largest banks to participate in a “scenario analysis” aimed at testing the stability of institutions in the event of major climate events.

*Not investment advice.