Each statement by Federal Reserve Chairman Jerome Powell is followed with particular attention by the financial markets. Indeed, during his last intervention yesterday, September 30, 2024, Powell expressed measured optimism about the Fed's ability to bring inflation back to its 2% target. This prospect could well be the catalyst for a major new rise in the crypto market.
Jerome Powell and the return of inflation to 2%
During the 66th annual meeting of the NABE (National Association for Business Economics), Jerome Powell reaffirmed his confidence in the Fed's ability to bring inflation back to its 2% target. “We are convinced that inflation is on a sustainable path to reach our target,” he said. declared. He also clarified that although the labor market remains strong, its gradual cooling over the past two years does not require further immediate interventions. Powell thus tempered expectations for further rate cuts, and clarified that any decision would depend on future economic data.
These statements are particularly important in the context of a US economy that is showing signs of resilience, despite inflation fears. He stressed that the path to controlled inflation remains difficult to predict with certainty, and reiterated the Fed's commitment to adjusting monetary policy based on changing data. A further rate cut by the end of the year is not ruled out, but it will mainly depend on upcoming inflation reports.
The crypto market and the prospect of an imminent rally
Although Powell did not promise further rate cuts for 2024, the crypto market remains optimistic. Global monetary easing policies, particularly in China, could benefit cryptos. If economic data remains favorable, we could see a recovery, especially with its bullish history in the fourth quarter.
Historically, the months of October to December are often marked by significant gains in the crypto market, and this year could well follow that trend, especially with these cautious statements from Powell on monetary policy.
Jerome Powell's optimism regarding reducing inflation, combined with a global environment favorable to monetary easing, appears to provide a favorable backdrop for a crypto rally. As investors eagerly await the next economic indicators, flagship cryptos could well ride this wave and reach new highs before the end of the year. However, as always, caution remains in order due to the volatility of cryptos.
Maximize your Tremplin.io experience with our 'Read to Earn' program! For every article you read, earn points and access exclusive rewards. Sign up now and start earning benefits.
