For Powell, it is still early to define next month’s monetary policy.
Faced with uncertainty, bitcoin (BTC) reacts downward.
Jerome Powell, Chairman of the United States Federal Reserve (Fed), tempered market expectations on a possible new interest rate cut in Decembercalling the decision “not a foregone conclusion.”
The statements were made during the press conference following the announcement of today’s cut, which, as CriptoNoticias reported, was a quarter of a percentage point.
Powell stressed that there were “strong differences of opinion” among committee members about the next steps to take. The main factor of uncertainty, as explained, is the partial US government shutdownwhich has delayed the publication of economic data crucial for decision-making.
“What do you do if you’re driving in the fog? You slow down,” Powell said, illustrating the cautious stance the body might take. The lack of reliable information on employment or inflation could lead the Fed to act more cautiously at its December meeting.
The reaction of the markets was immediate. Given these statements, the price of bitcoin (BTC) reacted lower:
As can be seen in the image above, BTC reached $110,000.