The crypto market is insensitive to the statements of the president of the US Federal Reserve

In a recent speech, US Federal Reserve Chairman Jerome Powell emphasized the need for the central bank’s independence from political influence.

Mr Powell made the comments during a roundtable discussion on the topic organized by Sweden’s central bank, Sveriges Riksbank. The event brought together central bankers from around the world, including Andrew Bailey, Governor of the Bank of England and Isabel Schnabel, member of the European Central Bank. The statement of Mr. Powell focused on why the institution should remain free from political influence and its responsibility in this regard.

The Fed is clear about its role

Mr. Powell remembered this the two main objectives of the Federal Reserve are to maintain price stability and to achieve a maximum level of employment. So, although the labor market remains solid, the Fed had to grow interest rates aggressively to quell rising inflation. Since these tough choices are highly contested by consumer voters, Powell stressed that they should stay away from short-term political considerations.

Although necessary, Jerome Powell added that the measures of this order should remain exceptional within a democratic society like the United States. Therefore, the Fed must show that it takes this responsibility seriously, respecting its mandate as much as possible.

In closing, Powell responded to criticism of the institution’s stance on climate change, stating that the Fed is not a “climate maker” and that any such decisions should be made by the Fed’s people, through their elected representatives.

As markets eagerly awaited details on the Fed’s upcoming decisions, Powell’s remarks turned out to be completely off the mark. Thus, the lack of any other indication of a rate hike drew a relatively harmless reaction from the crypto market. Indeed, an hour after Mr. Powell’s statement, Bitcoin AND Ethereum increased by 0.27% and 0.33%, respectively.

Source: Coin360

The CEO of JP Morgan makes his prediction

That said, even though Mr. Powell did not mention rising interest rates, the CEO of JPMorgan, Jamie Dimon, recently gave his predictions for the Fed’s next move. Indeed, Mr. Dimon told CNBC that The Federal Reserve’s rate hike may exceed current forecasts, which are currently around 5-6%.

Although it may be necessary to exceed those numbers, Mr. Dimon would welcome a pause in growth to see the full impact of last year’s increases. said Mr. Dimon. “We were a little slow to start. We have caught it. I don’t think there’s any harm in waiting three or six months.”

Moral of the story: The Federal Reserve can’t do anything about climate change, but it sure still makes the markets rain or shine.


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