Dove leaning remarks strengthen economic confidence

Federal Reserve Chairman Jerome Powell gave a speech at a New York Times event last night, during which he only casually mentioned monetary policy and economic topics in the extensive discussion that lasted for half an hour. This speech may be his last public statement before the interest rate decision on December 17-18. Starting from Saturday, the Federal Reserve will enter a "quiet period" before the meeting, and officials will avoid discussing monetary policy publicly.

Powell stated at the event regarding monetary policy:

The economic situation in the United States is very good, and there is no reason not to continue in this state... The downside risk in the labor market seems to have decreased, economic growth is significantly stronger than we expected, and inflation is slightly higher than expected. This is good news, indicating that we can be more cautious when looking for neutral interest rates

Bitcoin is like gold

On the other hand, when asked about his views on Bitcoin, Powell said:

People use Bitcoin as a speculative asset, right? It's like gold, "he further explained." It's just like gold, it's just virtual, it's digital

However, Powell emphasized that Bitcoin has not been used as a payment tool and its price fluctuates dramatically. He pointed out, "It's not a competitor to the US dollar, it's more like a competitor to gold, that's my view of it

The probability of interest rate cuts remains at a high level

BMO economists have concluded that Powell has hardly changed the market's expectation that the Federal Reserve may cut interest rates again. At the time of writing this article, the probability of a one yard interest rate cut in December is still as high as 78%.

Major US stock indices rise

In addition, Powell's remarks were interpreted by the market as dovish, easing concerns about an economic slowdown and boosting investor confidence, driving major US stock indices up. As of the close of the day, both the S&P 500 index and the Nasdaq index have reached historic highs.

Bitcoin hits $99000

At the same time, Bitcoin seems to have also been stimulated, breaking out of the narrow consolidation range of the past few days and briefly touching $99000 before slightly falling back to the $98500 level at the time of writing this article. And the Bitcoin market share has also shown signs of a long lost rebound.

(This article is authorized to be reproduced from GT Radar)

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