The Federal Reserve is alert to rapidly growing risks – an uncomfortable mixture of slowing down and increasing inflation that can challenge policy makers.
While Chair Jerome Powell insisted that the economy is in “good size” and emphasized that the central bank is “a good position to wait and look”, before transferring the policy, the subtle change in the Central Bank’s policy statement indicated to raise concerns over the direction of the economy.
Today, stabilizing its benchmark interest rate, the US Central Bank acknowledged the rising inflation and increasing risk of unemployment – roughly the definition of stagflation, which last made an appearance in a large part of the 1970s. This landscape will leave the Central Bank to promote increased inflation to pursue a weak economy to maneuver with limited rooms.
“Fed staples are concerned about,” the head of research in Zach Pundal, Grassscale, Posted on X After the decision. “We think the result will be good for bitcoin.”
In an earlier report, the pandal argued that the growing tariffs contribute to stagflation, historically damaging traditional property, but benefits rare reserves of value such as gold. “Bitcoin was not around for previous stagflation,” he wrote, “but can be considered a rare digital commodity and can be seen as a modern store of a fast value.”
Bitcoin traded a tight border after the Fed’s announcement and Powell’s comments. Before returning to $ 96,500–1.6% in the last 24 hours, it briefly touched $ 97,500 on optimism around the US-China trade talks.
A broad gauge of the crypto market, Coindesk 20 Index (CD20), was just 0.3% above the same period, the weight of a 1% -3% decline in XRP, Avax, Uni, Pass and Aave.
Meanwhile, equity recovered from earlier damage, with S&P 500 and Nasdaq closed 0.4% and 0.3% more respectively.
