Crypto and stock markets rose on Friday after Federal Reserve Chairman Jerome Powell hinted at upcoming interest rate cuts in a speech at an economic symposium.
Speaking in Jackson Hole, Wyoming, Powell said the economy was growing at a “solid pace” but noted that inflation and labor market data indicated an “evolving situation.”
“The upside risks to inflation have diminished. And downside risks to employment have increased. As we emphasized in our latest FOMC (Federal Open Market Committee) statement, we are alert to the risks to both sides of our dual mandate.
It is time for policy to change. The direction is clear, and the timing and pace of rate cuts will depend on incoming data, the evolving outlook and the balance of risk.
We will do everything we can to support a strong labor market as we make further progress toward price stability. With an appropriate reduction in policy, there are good reasons to think that the economy will return to 2 percent inflation, while the labor market remains strong.”
CoinGecko reports that the total cryptocurrency market cap rose 4.6% on Friday, with Bitcoin (BTC) clearing $64,000 for the first time since August 2. Meanwhile, the S&P 500 rose 1.15% on the same day.
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