Can the FED Move Bitcoin to ATH: Powell Gives Up on His Love of 2 Percent!

US Federal Reserve Chairman (FED) Jerome Powell attracted attention with his recent statements.

FED President Jerome Powell made critical statements on Monday, July 15. Powell said policymakers won't wait until inflation drops to 2% to cut interest rates.

Following the statements, significant increases were seen in the Bitcoin and altcoin markets. The FED's interest rate reduction and money burning policies were cited as among the factors that pushed the Bitcoin price to the top in recent years.

The issue of whether the same scenario could happen again this cycle was among the topics of discussion.

Interest rate cut may come sooner

The expectation of the FED's interest rate cut has been constantly postponed in recent months. However, after these latest statements by Powell, expectations focused on an earlier date of September 18, 2024.

According to CME FedWatch data, the market's interest rate cut expectation for September has increased to 85%.

Powell drew attention with the following statements in the details of his statement:

What this means is that if you wait until inflation is down to 2 percent, you've probably waited too long because the tightening that you've implemented or the level of tightening that you have is still the same.

We want to have greater confidence that inflation is moving sustainably towards our 2% target. What drives this is better inflation data. And we've been getting some of that lately.

Stay tuned for new information