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The Battle Against Inflation Needs More Rate Hikes Says FEDs Powell

In a Friday speech, the chair of the U.S. Central Bank doubled down on his intention to increase interest rates aggressively to lower inflation....
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In a Friday speech, the chair of the U.S. Central Bank doubled down on his intention to increase interest rates aggressively to lower inflation.

Federal Reserve Chair Jerome Powell stated that a more restrictive monetary policy is likely to be necessary for some time. He made this statement in a long-awaited speech at Jackson Hole’s annual economic symposium.

Powell stated that “restoring price stability will take time” and would require the use of his tools to forcefully balance demand and supply.

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Bitcoin (BTC), which was little changed following the Fed chair’s speech. This suggests that Powell’s somewhat hawkish comments had been largely priced in markets already.

We expect a 75-basis point rate increase in September and don’t expect it to have a dramatic effect on the markets should this happen,” Josh Olszewicz (head of research at Valkyrie Investments), wrote in an email.

The speech was streamed live for the first time ever in Jackson Hole’s history. Investors around the world were keen to hear from central bankers regarding where they think inflation is heading.

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Powell gave a fig-leaf to the doves and said that at some point, a slower pace for rate increases would be “appropriate”. Powell stated that policymakers will decide whether to tighten their stances by adding 50- or 75 basis points to the September FOMC meeting. This decision will depend on the “totality” of the data available and the changing outlook.

Felipe Rodriguez

Felipe Rodriguez

Felipe states he has super powers, some argue that case but he does come up with some very clear predictions. Felipe is based in the US and frequently travels to Brazil where he was born. He is a journalist of the future and has a portfolio of crypto projects he has worked with. Felipe always says "The future doesn't scare me as much as the past, crypto is here to stay but only time will tell where it will take us".
Felipe Rodriguez

Felipe Rodriguez

Felipe states he has super powers, some argue that case but he does come up with some very clear predictions. Felipe is based in the US and frequently travels to Brazil where he was born. He is a journalist of the future and has a portfolio of crypto projects he has worked with. Felipe always says "The future doesn't scare me as much as the past, crypto is here to stay but only time will tell where it will take us".

© 2022 The Daily Encrypt. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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