According to U.Today, Federal Reserve Chair Jerome Powell recently made statements that could influence the cryptocurrency market. On Monday, Powell mentioned that the central bank would not wait until inflation reaches 2% before cutting interest rates. Speaking at the Economic Club of Washington, D.C., Powell explained that central bank policy operates with 'long and variable lags,' which is why the Fed would not wait for its target to be met. He emphasized that the Fed seeks 'greater confidence' that inflation will return to 2%.
Powell clarified at the beginning of his address that he did not intend to signal when the Fed would start lowering interest rates. The central bank's next policy meeting is scheduled for the end of July, and other Fed officials are expected to speak this week. Investors are also anticipating the latest retail sales data and import and export prices on Tuesday.
The cryptocurrency market has shown a mixed reaction amid profit-taking after a bullish start to the week. Despite this, most cryptocurrencies remained in the green as investors considered Powell's comments on the economic outlook and interest rates. Some cryptocurrencies and meme coins have posted significant gains, with Dogwifhat (WIF) and Floki (FLOKI) up 20.35% and 18.4%, respectively, in the last 24 hours. Frog-themed cryptocurrency PEPE saw a 23% increase in the same period.
Meanwhile, Bitcoin rose by 0.46% in the last 24 hours to $63,166, reaching a near-one-month high of $65,025 earlier today. Fluctuating expectations for cuts in U.S. interest rates had previously reduced demand for riskier assets, causing Bitcoin to fall to lows last seen in February. Powell's recent remarks, which raised the prospect of rate cuts, appear to be bullish for the crypto market.