Stock market investors are closely watching what Federal Reserve officials say about economic policies, interest rates, and inflation. Official announcements have an impact on stock valuations and corporate earnings.
The Federal Reserve chair Jerome Powell’s comment surged the market price on Wednesday, 2022. As per Cryptocurrency price tracker CoinMarketCap, top cryptocurrencies including Bitcoin and Ethereum, were trading at $16,986 (USD) and $1,285 (USD), respectively. In the past 24 hours, Bitcoin has gained by 1.58%, and Ethereum has gained by 1.37%. The entire crypto market capitalization is at $856 billion which is a gain of 0.63% over yesterday.
Jerome Powell stated, “it is likely that restoring price stability will require holding at a restrictive level for some time. History cautions strongly against prematurely loosening policy.”
The United States central bank has raised interest rates by 75 basis points – four times – in a bid to tame record-high inflation. Analysts predict a raise in interest rates by 50 basis points or 0.50 percent in the future. Following Powell’s comment, the US currency dipped on Wednesday. The US stocks rallied, with the S & P 500 up to 200 DMA. Meanwhile, the Dow 30 index was back into the bull market, nearly 20% up compared to September.
Powell added, “despite some promising developments, we have a long way to go in restoring price stability. Wage growth remains well above levels that would be consistent with 2% inflation over time.”
In October, an inflation report showed that the price rose to 7.7%. Recently the United States Treasury Secretary reacted to overcome inflation in the country. Yellen stated, “over the next couple of years, I definitely think that inflation will come back down to levels closer to the normal levels we are accustomed to.” She added, “I think we see some good indications that inflation is poised to come down.”
According to CoinMarketCap, this year, the crypto market closely followed United States equities. Investor confidence in cryptocurrency is at an all time low and the global economic outlook is not showing signs of moving beyond the covid-recovery mode.
Mark Mobius, the famous author of Invest for Good and a multi-billionaire investor, recently warned that Crypto is not a good place to invest. Mobius predicted that Bitcoin could crash by 40% to $10,000 (USD) in the coming years. If Mobius’s prediction comes true, there is a high chance that the crypto market will crash.
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(see all)Source: https://www.thecoinrepublic.com/2022/12/04/us-federal-reserve-chair-comment-caused-the-market-price-to-surge/
US Federal Reserve Chair Comment Caused the Market Price to Surge
Stock market investors are closely watching what Federal Reserve officials say about economic policies, interest rates, and inflation. Official announcements have an impact on stock valuations and corporate earnings.
The Federal Reserve chair Jerome Powell’s comment surged the market price on Wednesday, 2022. As per Cryptocurrency price tracker CoinMarketCap, top cryptocurrencies including Bitcoin and Ethereum, were trading at $16,986 (USD) and $1,285 (USD), respectively. In the past 24 hours, Bitcoin has gained by 1.58%, and Ethereum has gained by 1.37%. The entire crypto market capitalization is at $856 billion which is a gain of 0.63% over yesterday.
Jerome Powell stated, “it is likely that restoring price stability will require holding at a restrictive level for some time. History cautions strongly against prematurely loosening policy.”
The United States central bank has raised interest rates by 75 basis points – four times – in a bid to tame record-high inflation. Analysts predict a raise in interest rates by 50 basis points or 0.50 percent in the future. Following Powell’s comment, the US currency dipped on Wednesday. The US stocks rallied, with the S & P 500 up to 200 DMA. Meanwhile, the Dow 30 index was back into the bull market, nearly 20% up compared to September.
Powell added, “despite some promising developments, we have a long way to go in restoring price stability. Wage growth remains well above levels that would be consistent with 2% inflation over time.”
In October, an inflation report showed that the price rose to 7.7%. Recently the United States Treasury Secretary reacted to overcome inflation in the country. Yellen stated, “over the next couple of years, I definitely think that inflation will come back down to levels closer to the normal levels we are accustomed to.” She added, “I think we see some good indications that inflation is poised to come down.”
According to CoinMarketCap, this year, the crypto market closely followed United States equities. Investor confidence in cryptocurrency is at an all time low and the global economic outlook is not showing signs of moving beyond the covid-recovery mode.
Mark Mobius, the famous author of Invest for Good and a multi-billionaire investor, recently warned that Crypto is not a good place to invest. Mobius predicted that Bitcoin could crash by 40% to $10,000 (USD) in the coming years. If Mobius’s prediction comes true, there is a high chance that the crypto market will crash.
Source: https://www.thecoinrepublic.com/2022/12/04/us-federal-reserve-chair-comment-caused-the-market-price-to-surge/