Fed Chair Jerome Powell Hints at Potential Interest Rate Hike

• The US Fed is ready to implement more interest rate hikes if they become necessary.
• Bitcoin is trading at $25,875 and is down 0.52% in the last 24 hours.

In order to bring inflation down, U.S Fed Chair Jerome Powell has suggested that weaker labor markets are necessary. He issued a stern warning that the US Federal Reserve is ready to implement more interest rate hikes if they become necessary.

Powell said that the Fed plans to keep interest rates low until they are convinced that inflation is trending sustainably towards their 2% objective. The Federal Reserve Bank of Kansas City held the Economic Policy Symposium, where he delivered his speech. In light of the persistent macroeconomic uncertainty, investors were waiting for the Fed Chair’s remarks on the long-term economic picture.

Bitcoin Price Struggles

The Fed Chair said that the monetary policy committee will deliberate thoroughly before deciding whether to implement another rate rise. The Federal Open Market Committee (FOMC) is slated to meet next on September 20, 2023, with the target rate sitting at 525–550 basis points (bps) as of right now.

According to the CME FedWatch Tool, market participants are presently 78% certain that the next meeting will not include any rate hikes. After initially dropping in reaction to the speech, Bitcoin’s price briefly spiked, post which it went down all the way to $25,820 mark.

Severe selling pressure is likely if the price breaks the current support level around $25,660. At the time of writing bitcoin is trading at $25,875 and is down 0.52% in the last 24 hours. Moreover, the trading volume has declined by 12.85% as per data from CMC.

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