Fed's Powell: No need to rush to cut interest rates
According to (CNBC) reports, US Federal Reserve Chairman Jerome Powell said in his latest speech yesterday that due to the strong performance of the US economy, it can calmly decide the extent and speed of interest rate cuts, and emphasized:
"The economy is not currently sending any signals that there is a need to cut interest rates urgently."
In his speech, Ball was optimistic about the state of the U.S. economy, saying that economic growth is much better than that of other major economies.
He pointed out that although employment growth in October was disappointing due to the impact of hurricanes and strikes, the overall labor market remains solid.
On inflation, Ball said he has seen "broad progress" and expects inflation to continue moving closer to the Fed's target of 2%.
October PPI shows slight pickup in inflation
On the same day as Ball’s speech, the United States also released producer price index (PPI) data. The monthly PPI growth rate in October was 0.2%, up 0.1% from September, in line with Dow Jones's expectations, while the annual growth rate was 2.4%; the core PPI monthly growth rate was 0.3%, up 0.1% from September, also in line with the market expected.
However, the annual core PPI growth rate of 3.1% is still above the Fed's target, but the overall trend shows that inflation is gradually slowing.
In terms of employment, the latest report from the U.S. Department of Labor showed that the number of initial jobless claims for the week ended November 9 was 217,000, a decrease of 4,000 from the previous week, slightly lower than the expectation of 220,000, indicating that the job market continues to be weak. steady.
Bitcoin fell after Ball’s speech
Although U.S. inflation appears to be under control and the job market continues to be solid, the risk asset market is still most concerned about the extent and speed of interest rate cuts.
As a result, Ball’s hawkish comments weighed on the cryptocurrency market. Bitcoin fell in the minutes after the speech, reaching as low as $86,668, and Ethereum ($ETH) also suffered similar losses.
CME Group FedWatch data showed that after Powell's speech, the market's probability of a rate cut in December had dropped sharply to 62%, but it was still above 80% the day before yesterday.
Ball's hawkish remarks also affected the traditional investment market, with the three major U.S. indexes closing down, including the Dow Jones Index, which fell 0.47%, the S&P Index, which fell 0.6%, and the Nasdaq Index, which fell 0.64%.
Ripple ($XRP) bucks trend
Although the overall market is under pressure, Ripple ($XRP) has become a mainstream currency that bucked the trend and has risen as high as $0.8473. As of writing, it is quoted at $0.8148, with an intraday increase of more than 17%.
Why is $XRP bucking the trend? (CoinDesk) believes that it may be related to the remarks of Gary Gensler, chairman of the U.S. Securities and Exchange Commission (SEC). In his latest speech, he reviewed his experience since taking office. It is interpreted by the outside world that he may quietly leave his post after Trump takes office.
Despite the correction, the cryptocurrency market has remained quite strong recently.
Bitcoin’s weekly gains remain at around 15%, while tokens such as Cardano ($ADA), Ripple ($XRP), Near Protocol ($NEAR) and Stellar ($XLM) have seen gains ranging from 20% to 40%. %, Dogecoin ($DOGE) and PEPE Coin ($PEPE) surged respectively on the news of Musk and listed exchanges.
Extended reading: Dogecoin surges by more than 50%! Investors are excited, the slogan "DOGE to 1" is back and the three major exchanges have announced their listing! PEPE currency soared 90%, but “this indicator” suggests caution
[Disclaimer] There are risks in the market, so investment needs to be cautious. This article does not constitute investment advice, and users should consider whether any opinions, views or conclusions contained in this article are appropriate for their particular circumstances. Invest accordingly and do so at your own risk.
"Federal Reserve Ball is flying eagle!" Bitcoin fell below 87,000, but "this coin" took off against the trend." This article was first published in "Crypto City"
