Federal Reserve Chair Powell shows no urgency to lower interest rates, Bitcoin falls along with tech stocks, ETF news boosts ADA with a 10% surge
Fed Chairman Powell: Not in a Hurry to Lower Interest Rates
US Federal Reserve Chairman Jerome Powell began a two-day hearing in Congress and stated on Tuesday at the Senate Banking Committee that the Fed is not in a hurry to lower interest rates.
Powell said, “Since our policy stance is much more accommodative than before and the economy remains strong, we do not need to adjust our policy stance hastily.”
This statement is consistent with his remarks after the Fed’s decision in January to keep the key policy interest rate unchanged. The strong US labor market allows Fed officials to patiently consider further interest rate cuts. Powell stated on Tuesday that the labor market is “overall balanced” and “won’t be a significant source of inflationary pressure,” and inflation expectations “seem to remain stable.”
After Powell’s speech, US bond yields continued to rise while stock prices fluctuated. According to the CME FedWatch Index, traders expect the Fed to cut interest rates again in July this year, with only a small cut expected by 2025.
The market is eagerly awaiting today’s release of CPI data.
Bitcoin at $95,000, ADA Rises 10% with ETF News
Yesterday, Bitcoin and Ethereum fell along with tech stocks.
Proof-of-Reserves data from Binance, the world’s largest cryptocurrency exchange, showed that the exchange may have sold, invested, or reallocated up to $8 billion worth of Bitcoin, Ethereum, and USDT from its reserves last month, causing market concerns.
NYSE Arca, on behalf of asset management company Grayscale, submitted an application to the US Securities and Exchange Commission (SEC) on 2/10, planning to launch the first Cardano (ADA) spot ETF in the US. ADA rose 10% yesterday, performing as one of the top cryptocurrencies by market value.
Risk Warning
Cryptocurrency investments carry high risks, and prices may fluctuate dramatically, leading to potential loss of the entire principal. Please assess the risks carefully.
