Jerome Powell took everyone from Jackson Hole by adopting a significantly more conciliatory monetary posture. This unexpected change of tone immediately doped the risky assets. Bitcoin, on the front line, crossed the $ 116,000. This strategic turnaround may well mark a major turning point in the orientation of the Fed.
In short
- Bitcoin jumped $ 112,000 to $ 116,063 following accommodating statements by Jerome Powell.
- The Fed abandons its “catching up” strategy of inflation and now favors a more flexible approach.
- The equity markets have also climbed, anticipating possible drops in future rate.
A speech that marks a strategic turning point
Jerome Powell said one of his most conciliatory speeches on Friday for many months.
The president of the federal reserve reaffirmed that the institution was fully ready to adjust its monetary policy according to the evolution of economic indicators. A resolutely more flexible posture, which contrasts with the firmness displayed during previous interventions.
Among the strong signals of this turnaround, the Fed has officially abandoned its “catch -up” strategy of inflation, in force since 2020.
Powell has also minimized the impact of recent price increases caused by customs duties, calling them “largely temporary”. This in -depth revision of the strategic framework marks a break with the aggressive preventive approach adopted in recent years.
Another key indicator of this repositioning: the priority now granted to employment. The rise in the unemployment rate to 4.2 % and the visible slowdown in postal creations led the Central Bank to recognize the risks of excessive tightening.
The Fed now seeks to preserve the stability of the labor market by avoiding too prolonged monetary hardening which could worsen the situation.
Finally, this inflection comes in a particularly tense political context. Taken between the pressure of the White House and the need to preserve the independence of the Central Bank, Powell seems to opt for a balance strategy. By favoring a moderate and pragmatic communication, it reassures the markets while defending the credibility of the institution.
Bitcoin benefits from monetary uncertainty
The reaction of the bitcoin was not long in coming. In just a few hours, cryptocurrency jumped more than $ 3,000, from around $ 112,000 to an intra -day summit of $ 116,063.
This movement reflects immediate reading of the markets: the more accommodating tone of the federal reserve opens the way to a weakening of the dollar, which directly benefits alternative assets such as Bitcoin.
This revival of vigor also reflects the growing role of bitcoin in institutional investment strategies. More and more perceived as a reserve of strategic value, it is essential in portfolios such as coverage against expansionist monetary policies and inflationist risks.
Wall Street also favorably welcomed Powell's speech, with a generalized increase in clues. The markets now anticipate a possible drop in rates if economic data continue to deteriorate.
The Fed now seems to favor flexibility with rigidity, a turn that has clearly reassured the crypto markets. But this more measured inflection could also be part of a high -tension political context.
At a time when criticism is raining on the institution, this more conciliatory posture is not intended only to stabilize the economy … It could also, in filigree, contribute to preserving a certain balance within the Central Bank itself.
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