Federal Reserve Chair Jerome Powell reassured the nation, asserting a strong stance against the looming fear of recession, while Bitcoin gains as a hedge.
Powell’s confidence stems from analyzing current economic data and trends, disassociating from political influences often cloud economic forecasts. This assertion comes amidst a climate of skepticism toward monetary policy’s role in ensuring long-term economic stability.
Recession Is Unlikely This Year
Jerome Powell’s declaration aligns with his previous comments, underscoring the Federal Reserve’s commitment to data-driven decisions.
The core PCE, stripping out the volatile costs of food and energy, rose by 2.8% over the past 12 months. Meanwhile, the overall inflation rate stood at 2.5% from the previous year. Powell said that this aligns with his forecasts, and it is encouraging to witness outcomes that meet expectations.
Powell’s optimism, acknowledging a low risk of recession, reflects a pragmatic view of the economy. Moreover, he downplayed the possibility of reducing interest rates until the “Federal Open Market Committee is confident that inflation is moving down to 2% on a sustained basis.”
“Growth is strong. As I mentioned, the economy is in a good place. And there’s no reason to think the economy is in a recession or is at the edge of one,” Powell said.
This perspective redirects focus towards structural elements of economic growth, away from the short-term effects of monetary adjustments.
Read more: How to Protect Yourself From Inflation Using Cryptocurrency
While Powell maintained that a recession is unlikely this year, Bitcoin benefits from the uncertain fiscal and mo
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Author: Bary Rahma
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