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Cryptocurrency Prices Cool as Fed Chair Jerome Powell Takes Ambiguous Tone on Future Monetary Policy Choices

Umito November 17, 2024

After nearly two weeks of explosive gains, cryptocurrency prices briefly cooled on Thursday and Friday, likely due to a speech by U.S. Federal Reserve Chairman Jerome Powell.

Powell radius in Dallas on Thursday and adopted a somewhat ambiguous tone on future US monetary policy choices.

He continued to emphasize that the Fed considers the current risks to inflation and employment targets to be “roughly balanced.”

“We know that reducing policy restrictions too quickly could hamper progress on inflation. At the same time, reducing policy stringency too slowly could unduly weaken economic activity and employment.

Over time, we evolve towards a more neutral framework. But the path to get there is not predefined. In considering additional adjustments to the federal funds rate target range, we will carefully evaluate incoming data, the evolving outlook, and the balance of risks. The economy is not sending any signals that we need to hurry to lower rates. The current strength of the economy gives us the opportunity to approach our decisions with caution. Ultimately, the evolution of the policy rate will depend on developments in available data and the economic outlook.

The overall crypto market cap declined on Thursday but recovered on Friday afternoon and is up more than 2% over the past day at the time of writing, according to CoinGecko.

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