Bitcoin soared to $39,000 shortly after the Federal Open Market Committee announced that interest rates would not change, but Federal Reserve Chairman Jerome Powell spoke about the future of US finance. The policy was to immediately return to trading in the neutral territory as it was launched at the press conference.
Powell emphasized that the Commission’s focus is on maintaining a strong labor market and reducing inflationary pressures. These are the two main drivers of the FOMC monetary policy. Inflation has been rampant over the past year with prices far above the Commission’s long-term average of 2% due to imbalances in supply and demand and increased liquidity in the market.
Despite a “very strong” labor market, Powell said inflationary pressures remain wary of the Federal Reserve’s attempts to keep prices low. Powell added that inflation was above target and lasting longer than expected, and urged a set of tighter policies ahead.
Powell said the committee had not yet decided on the pace and level of interest rate hikes. He said it was likely to be discussed in more depth at the next meeting in March, but stressed the focus of monetary policy for this year. Even if it means slower growth, it is about curbing inflation. The Federal Reserve Chairman reassured that the labor market is expected to remain strong after the monetary tightening policy is adopted.
When asked if the federal government and committees were concerned about the more severe impact of inflation on low-income families, Powell replied that inflation would hurt all Americans, regardless of their income, but they are. Those who live off salaries as purchases have admitted they could take a hit, targeting basic necessities whose prices are skyrocketing.
“Everything we do is in the public interest,” Powell said.
Over the past few years, American citizens have heard Powell reassure them that central banks are doing everything they can to secure a thriving economy and job market, but they are seeing a lot of results. I was not. Inflation is at a 40-year high as the Federal Reserve condemns supply-side constraints to persistent price increases while adopting highly accommodative policies to increase market liquidity. barber. The inability to effectively curb inflationary pressures has caused some Americans to rethink their confidence in central banks and their ability to secure a healthy economy.
Bitcoin suffers from irresponsible credit expansion and shallow growth, so in most cases, who will reject a disrupted financial system designed by a central bank that does not guarantee people’s best interests. We will provide it for you too. Unexpected supply-side inefficiencies play a role, but they are only part of the equation. Bitcoin is the only lifeboat available to protect people’s purchasing power and escape systems that have failed many times to foster a well-functioning economy.
“I don’t really know what this is going to be,” Powell said, citing the intent of the Commission’s monetary policy and its unforeseen consequences until the end of the live broadcast.
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