Advertisement
AD

Main navigation

Jerome Powell's Market Message Decoded by Jim Cramer, What It Means for Crypto

Advertisement
Thu, 2/05/2024 - 12:28
Jerome Powell's Market Message Decoded by Jim Cramer, What It Means for Crypto
Cover image via www.youtube.com

Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.

Read U.TODAY on
Google News

CNBC's Mad Money host Jim Cramer recently shared his take on Fed Chair Jerome Powell's remarks from the Fed's two-day meeting that just ended.

Advertisement

Federal Reserve Chair Jerome Powell suggested that raising interest rates was unlikely to be the Fed's next action. Officials would need to see compelling evidence that the policy is not tight enough to bring inflation back to its 2% target. 

Cramer told investors to believe Federal Reserve Chair Jerome Powell when he hinted on Wednesday that a rate hike was improbable, despite persistent inflation.

Although Powell's comments temporarily calmed the markets, Cramer indicated that investors might become concerned again as job data will be announced on Friday. The numbers could provide more information about whether the economy is slowing or accelerating.

Related

Even though Powell stopped short of signaling rate cuts were likely this year or that rates were at a peak, Cramer said that the Fed chief had managed to take "the dreaded rate hike scenario off the table." 

Given Cramer's history of making predictions that turn out contrary, particularly in the crypto market, this raises the question of the implications of the recent developments on the macro front for cryptocurrencies. 

Implications for cryptocurrencies

Historically, Bitcoin has had four April declines in the last decade, three of which foreshadowed May losses of 18% on average, according to Bloomberg data.

Still, if inflation pressures ease and markets resume bets on a much looser Fed stance, cryptocurrencies and other speculative assets may see some respite.

The Fed has maintained interest rates steadily in the 5.25%-5.5% range for nearly nine months, and Powell's statements did not imply that the central bank is inclined to drop rates anytime soon.

Related

It is unusual for interest rates to hold steady for more than a year. That said, the lagging impact of higher-for-longer rates remains a concern for risk assets like cryptocurrencies. This could be a tail risk that might keep bulls at bay.

Related articles

Advertisement
TopCryptoNewsinYourMailbox
TopCryptoNewsinYourMailbox
Advertisement
Advertisement

Recommended articles

Latest Press Releases

Our social media
There's a lot to see there, too

Popular articles

Advertisement
AD