FED Chairman Speaks! What Happened to Gold and Bitcoin?

The US central bank, the FED, announced its highly anticipated interest rate decision. The Fed increased the interest rate by 25 basis points, in line with expectations. Gold and Bitcoin price suddenly dropped with the FED decision, then recovered. FED Chairman Jerome Powell is holding a press conference half an hour after the announcement. Eyes on Jerome Powell’s statements… cryptocoin.com We have compiled the details for you, let’s examine the subject together… The article will be constantly updated with new statements from the FED Chairman. Update the page constantly so you don’t miss the explanations!

FED Chairman is speaking: Gold and Bitcoin investors are in these statements!

The US central bank, the Fed, announced its expected interest rate decision. The Fed increased the interest rate by 25 basis points, in line with expectations. With this decision, the FED decided to increase interest rates for the first time since November 2018. The FED signaled 6 interest rate hikes for the rest of the year. However, a hawkish path direction was made in the dot chart of the FED, especially for the near term. In the text of the resolution, it was seen that the effects of the Russia-Ukraine war were also emphasized.

The FED also announced its projections on economic developments in its decision. The growth expectation, which was announced as 4 percent in December for 2022 in the text of the decision, was withdrawn to 2.8 percent. The 2023 growth expectation remained the same as 2.2 percent, while the 2024 growth expectation remained the same as 2 percent. Gold and Bitcoin price suddenly dropped with the FED decision, then recovered. Now, Fed Chairman Jerome Powell is speaking. FED Chairman Jerome Powell is holding a press conference half an hour after the announcement of the interest rate decision. Jerome Powell’s first statements are as follows:

• The FOMC plans to reduce the balance sheet.
• We plan to increase interest rates further in 2022.
• FOMC participants adhere to strong growth prospects.
• We expect labor markets to remain strong in this environment.
• Reducing the balance sheet will play an important role in policy tightening.
• At one of the next meetings, we will begin to narrow the balance sheet.
• The labor market looks extremely tight.
• The economic consequences of Russia’s invasion of Ukraine are rather uncertain.
• Continuation of interest rate increases seems appropriate.
• An increase in federal funds rates in the coming period would make sense.
• Inflation will take longer than expected to reach our previous targets.
• The economy is very strong, the momentum in the labor market is magnificent.
• It’s time to raise interest rates and narrow the balance sheet.
• Inflation will remain high this year but lower than in 2021.
• The Fed will move faster in rate hikes if necessary.
• If we need to move faster in monetary policy, we will.
• Fed members forecast strong growth despite the downside risks posed by the war.
• The war in Eastern Europe will affect us through many channels.
• We maintain our 2.8% growth target in the economy.
• Fed officials are ‘absolutely’ aware of the need to restore price stability.
• We see upward price pressure on oil prices in the short term.
• The continuation of interest rate increases is appropriate.
• There may be an interest increase in every meeting, the contraction of the balance sheet is not dependent on interest increases.
• We have a plan to increase the interest rates in a balanced way and to narrow the balance sheet during the year.
• We will take the necessary steps to prevent inflation from solidifying.
• We have the monetary policy tools we need and we will use them.
• The interest rate step is on the agenda at each meeting, the size of the movement depends on the economy.
• The job market looks ‘unhealthyly tight’.
• With monetary policy changes, financial conditions will tighten further.
• Greater labor supply could in principle help reduce inflation.
• We may announce the balance sheet reduction plan in May, the next meeting.
• The monetary policy framework is all about anchoring inflation expectations at 2 percent.
• Inflation may take longer than we would like, but we expect prices to come down.
• Price stability is a prerequisite.
• We are suffering from high inflation.
• To achieve the target price stability, to ensure that the labor market remains strong.

Fed Chairman Powell stated that they will announce the balance sheet reduction plan at the next meeting, May.

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