Jerome PowellPresident of the US Federal Reserve, gave a speech in Jackson Hole this Friday (23)His speeches caused Bitcoin, gold and stocks to rise.
The highlight is the Bitcoinon the rise of 4.4% in the last 24 hours. The indexes S&P500 And Dow Jones to get up 0.82% And 0.84%respectively, and the gold valued 1% in the same period.
US looks at data and finds 818,000 fewer jobs created
The market was already expecting two to three rate cuts from the Fed this year. Either way, Jerome Powell’s speech may have changed due to: revision of US employment data.
According to the review, US added 818,000 fewer jobs than previously reportedThe final evaluation should be presented in February 2025, after the presidential elections.
“For the CES national employment series, annual benchmark revisions over the past decade have averaged plus or minus 0.1% of total non-farm employment.”, he wrote the Bureau of Labor Statistics (BLS).
“The preliminary estimate from the benchmark study points to an adjustment of −818,000 (-0.5%) in total non-farm employment in March 2024.”
According to This data is used as an indicator of whether the country is entering a recessionThe revision puts additional pressure on the Fed, which believed the country was continuing to generate jobs despite high interest rates.
Those who also used these numbers were the investors themselves, who were anticipating the Fed meetings in June Bitcoin fell shortly after the US reported the creation of 272,000 jobs in the previous month.
Fed chairman says he’s prepared to cut rates
Jerome Powell’s speech on Friday (23) was short, but encouraged markets. Bitcoin is trading at almost $63,000 and is up 4.4%, leading other cryptocurrencies higher.
“It’s time to change the policy [monetária].”
“The direction is clear, and the timing and pace of rate cuts will depend on incoming data, the evolving outlook and the balance of risks”said Powell.
While he did not cite the revisions to the employment data, Powell noted that “Downside risks to employment have increased”where we recognize the consequences of interest rates being so high for so long. The video can be viewed below.
Nearly confirmed Fed will cut rates, perhaps at next meeting of the day September 18, the market is trying to guess whether it will be 0.25 or 0.5%There will be three meetings by the end of the year, the other two are planned November 7th And December 18.
The US Central Bank itself had already done that published a prediction of these cuts in June, but the situation appears to have changed since then due to new data.
Source: Live Coins
Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
