"No rush to cut interest rates"! Bitcoin fell below $87,000, and U.S. stocks closed down collectively!
Last night, the speech of Powell, the Fed, put pressure on the sentiment of the financial market. The U.S. dollar index rose in the short term, the short-term decline of spot gold widened, the U.S. stock market accelerated its decline in the late trading, and Bitcoin also suddenly fell sharply
Bitcoin also fell sharply, falling below $87,000 per coin during the session, a drop of nearly 4%.
Federal Reserve Chairman Powell said that because the U.S. economy has performed "very strongly" recently, the Fed does not need to "rush" to cut interest rates, and will carefully observe to ensure that certain inflation indicators remain within acceptable ranges. He claimed: "The economy has not sent any signals that we need to rush to cut interest rates, and the economic strength we are seeing now gives us the ability to make prudent decisions."
Federal funds futures trading reflects the decline in the probability of a 25 basis point rate cut at the Fed's December meeting, falling to around 62% on Thursday afternoon, Eastern Time, down from 82.5% earlier.
The producer price index (PPI) for October released by the United States on Thursday rose by 0.2%, in line with expectations. The consumer price index (CPI) for October released on Wednesday was in line with expectations, but still showed that the Fed's efforts to fight inflation have not yet won. The core CPI rose by 0.3% for the third consecutive month, and the year-on-year increase was 3.3%.
Former U.S. Treasury Secretary Summers said that if President-elect Trump really fulfills his promise, the United States will once again experience a serious inflation crisis.
