Crypto Slides Amid Stagflation Concerns & Gloomy Economic DataThe cryptocurrency market has retreated under the shadow of renewed concerns about US stagflation.
Federal Reserve chair Jerome Powell left the benchmark federal interest rate at between 5.25% and 5.5% at the latest FOMC meeting Wednesday, citing sticky inflationary pressures and a lack of recent progress toward their 2% inflation target. However, Powell downplayed the idea of needing additional rate hikes.
“It’s unlikely that our next policy move would be a rate hike,” Powell said.
Economic data revealed a slowdown in US GDP growth to 1.6% this quarter and a 3.4% increase in the PCE index – the Federal Reserve’s preferred inflation metric. However, Powell also downplayed the notion that stagflation had arrived.
“I don’t really understand where that’s coming from,” Powell said. “I don’t see the stag or the flation.”
After BTC had reached an almost two-month low at roughly $57,000 on Wednesday, the price rallied to $59,269.80 as of press time Thursday.
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