Bitcoin Reacts As Fed Delays Rate Cuts

Understanding the Federal Reserve's Monetary Policy The Federal Reserve plays a pivotal role in shaping the economic landscape through its monetary policy decisions, including interest rate adjustments and quantitative easing measures.

In recent comments that the crypto markets took note of, Fed Chair Jerome Powell stated that the U.S. economy has not seen inflation return as the central bank's target, indicating that interest rate cuts are unlikely to occur anytime soon.

Like the broader risk markets, bitcoin (BTC) showed little reaction to Federal Reserve chair Jerome Powell's hawkish comments on interest rates yesterday's US-Canada economic policy forum. “Recent data have clearly not given us greater confidence,” said Powell.

Bitcoin was one of the cryptocurrencies that reacted to Federal Reserve Chairman Jerome Powell's remarks during a panel discussion on Tuesday. Powell reiterated the central bank's commitment to maintaining a restrained monetary policy, despite encouraging economic indicators.

Federal Reserve Chair Jerome Powell has indicated that interest rate cuts may be further off than anticipated. He cites recent inflation data that defies earlier expectations of a rapid decline.