Powell Speech Today: U.S. Federal Reserve Chairman Jerome Powell, in his post at the Federal Open Market Committee (FOMC) press conference, said that a small number of banks have entered serious difficulties. In response to these events, the Fed has taken swift action in conjunction with the FDIC, he said. In his opening remarks, the Fed Chairman said isolated banking problems could threaten the banking system if left unaddressed. He added that the savings of all bank depositors are safe amid concerns about a growing banking crisis.
In response to these comments, Bitcoin price fell about 1%, but the crypto market could take another turn after the Fed Chairman’s comments are processed. It may be recalled that previous Powell speeches saw a turnaround in the crypto market system after the press conference ended.
About SVB Collapse
Speaking of the collapse of the Silicon Valley Bank (SVB), Powell said that the management of the SVB fundamentally failed badly. Fed regulators saw the risks and stepped in, he explained. He also admitted that there is so much uncertainty surrounding the banking crisis.
Powell said in his speech that the Fed remains strongly committed to bringing inflation down to 2% and that the central bank will use all necessary tools. The Fed chairman admitted that the process of curbing inflation has a long way to go and it will be bumpy. He also acknowledged that the FOMC is aware that high inflation brings significant hardship.
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Earlier, the Federal Open Market Committee (FOMC) of the US Fed came up with a 25 basis point increase on the expected lines. This increase brought the current target rate from 450-475 bps to 475-500 bps. The central bank said recent indicators point to modest growth in spending and production. Regarding the ongoing banking crisis, the Fed said the US banking system is sound and resilient. The crypto market reacted mixed to the decision.
The central bank panel said the unemployment rate has remained low while inflation has remained high. It warned of tighter credit conditions for households and businesses as a result.
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Anvesh reports major developments around crypto adoption and trading opportunities. He has been associated with the industry since 2016 and is now a strong advocate for decentralized technologies. Anvesh is currently based in India. Contact him at [email protected]
The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or publication is not responsible for your personal financial loss.
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