FED Chairman Speaks: What Will Be the Next Move of the USA?

Chairman of the US Federal Reserve Jerome PowellHe “emphasized” that when the Federal Open Market Committee (FOMC) met at the end of March, the central bank had not yet made a decision on the size of the rate hike.

Speaking before the House Financial Services Committee on Wednesday for his semiannual monetary policy report, Powell made a notable change in his speech (according to his Senate testimony Tuesday). “I emphasize that no decision has been taken on this matter,” Powell said today, while talking about the pace of rate hikes.

On Tuesday, markets perceived Powell’s statements as the Fed’s March meeting will increase interest rates by 50 basis points instead of the previously assumed 25. After the statement, there was a strong rally in the dollar, while there were big drops in Bitcoin and stocks. The addition of the phrase “no decision” this morning may be an attempt to calm hawk fears.

bitcoin (BTC) gained more than $200 on the news, climbing over $22,000 to reach $22,200. The S&P 500, on the other hand, went from a modest loss to a modest gain. The dollar is giving back some of its massive gain on Monday.

Powell with the present FOMCHe reminded that there are a number of important economic reports between the March 21-22 meeting of . This Friday’s February payroll report and next week’s inflation figures are among them, and the incoming data will play an important role in guiding the rate decision.

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