The Bitcoin price recently retested the $100,200 benchmark while multiple Federal Reserve members issued synchronized statements. Former President Donald Trump expressed concerns about a Supreme Court decision, predicting dire consequences. As such, it appears to be another nerve-wracking day for cryptocurrencies. Here are the highlights of the ongoing statements.
Latest Fed Announcements
The Speaker of the U.S. House of Representatives expressed increased pessimism regarding the end of the ongoing government shutdown. Being the longest shutdown in history, its prolongation has unfavorable implications for cryptocurrencies. Meanwhile, Trump urged the end of the filibuster, recommending the Democrats be ignored. Although the U.S. issued an Executive Order reducing China’s fentanyl tariff to 10%, as anticipated, this move failed to bolster market sentiments.
Several significant statements from Federal Reserve members, including Hammack, have been noted. Hammack stated:
“I expect inflation to rise by 2026. This year, inflation will be 1% above the 2% target. I don’t believe there will be a downturn in the labor market. The Fed might exceed its inflation target for a decade. The job market might not be as fragile as the data suggests. After an increase this year, unemployment should drop again. The economy is expected to gain momentum next year. Considering inflation, it is not feasible to suggest the U.S. central bank should lower the interest rates again. The inflation rise could extend beyond the tariff pressure, prompting concerns about the current policy rate when considering inflation.”
Hammack, like several other Fed members, implied there should be no rate cut in December. Williams summarized by stating:
“Persuasive evidence shows that independent central banks make decisions that are unpopular short-term but effective long-term. Losing central bank independence has led to severe inflation consequences in other countries. In real-world policymaking, data movements are significantly more crucial than neutral rate estimates. The Neutral Rate Model indicates that faster productivity increases real interest rates.”
While Williams emphasized the importance of independence, Barr touched upon how artificial intelligence is affecting employment in some sectors.
