Crypto analyst Crypto Rover (@RoverCRC) tweeted that he expects the market to currently have a 92% chance of cutting interest rates in September. The positive comes after the poor employment report in July, which has led to the economy recording a decline in the labour market, adding only 100,002 people, rather than the 226,000 jobs expected in the report. Analysts believe that even if Powell takes this step, they could also win smaller cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH), with the former aiming to surpass the $70,000 mark. The stock also appears to be ready to recover. Indexes in particular for high-tech weighted markets.
Powell Ito is data dependency
Jerome Powell doesn’t share market optimism and argues that new inflation and employment figures for August are important. Traders are optimistic, but there are risks such as stagflation, tariffs and pressure in the global market that could affect the Fed verdict. Cutting interest rates reduces the costs of borrowing money by companies, and can encourage shareholder buybacks, and drives increased valuation.
Nevertheless, Jerome Powell is less optimistic, emphasizing that the Fed’s decision will depend on future inflation and employment rates. Powell clearly stated that monetary easing occurs only if the economic situation justifies it, and only if they do not make the rash decision to stimulate the economy at the expense of causing another inflation.
Despite good predictions, there may be obstacles that can slow or reduce speed. If inflation rises in inches in August or September, the Fed can either lower that rate or wait.