Jerome Powell gave a press conference after the FOMC meeting to discuss the economy and his action plan.
The cryptocurrency market responded favourably to the decision to hike interest rates.
In his opening remarks at the FOMC Press Conference, Fed Chair Jerome Powell stated that the committee is dedicated to the 2% inflation target. Price stability, according to Powell, is the foundation of the economy. Continued hikes will be necessary to bring the inflation rate back to 2%, he said. This is a reference to refraining from making hasty decisions in favour of loosening policy
The historical data strongly discourages premature policy relaxation. Powell promised that we would continue working until the job was finished. The cryptocurrency market crashed as a result of Powell's comments, with prices for Bitcoin and Ethereum plummeting by approximately 1%.
The Fed chair stated that it will take time to see the consequences of the Fed's tightening efforts. We'll keep working till the job is done, he continued. The Fed chair stated that even though inflation has recently subsided, it is still now too high. Although he admitted that the mood was generally favourable, he claimed that more proof was needed before it was possible to say with certainty that inflation would decline.
Even while recent events are encouraging, we will want much more proof before we can be certain that inflation is on a prolonged lower path.
In February, the US Federal Reserve announced a 25 basis point increase in interest rates, which may be interpreted as a pause in its efforts to control inflation. However, the central bank announced that additional rate increases will take place in the upcoming months, leaving traders in the dark as to when the Fed would pivot.
Following the decision to raise interest rates along the anticipated lines, the U.S. Dollar Index (DXY) partially reversed some of its early losses. The move to raise interest rates was well received by the cryptocurrency market in the meanwhile. BTC price is currently $24,042, up 1.21% over the previous day. Currently, the US Dollar Index is down 0.22% at 101.81.
