JUST IN! FED President Jerome Powell Speaks Live! Here are the Highlights and Bitcoin's Reaction!

FED President Jerome Powell addressed the Dutch Foreign Bankers Association panel, providing insights into the current state of the US economy and inflation. Here are the key points from his speech:

1. Strong Economic Performance: Powell emphasized that the US economy is performing very well, supported by a robust labor market.
2. Labor Market Strength: Despite ongoing labor shortages in certain sectors, Powell noted that overall, the labor market remains strong.
3. Gradual Cooling in Labor Market: Powell observed signs of a gradual cooling in the labor market as supply and demand dynamics improve.
4. GDP Growth Outlook: The Federal Reserve expects continued GDP growth of 2% or better in the near term.
5. Inflation Outlook: Powell acknowledged that inflation has been a concern, stating that the Fed did not expect a smooth path on inflation. He stressed the importance of patience and allowing policies to take effect.
6. Inflation Concerns: While Powell expects inflation to return to levels similar to last year, he expressed lower confidence in its decline. He noted that overall confidence in inflation decreasing is also lower than before.
7. Complexity of PPI Data: Powell described the Producer Price Index (PPI) data as a bit complicated, indicating that it does not signal high inflation definitively.

The trading price of Bitcoin was $61,790 before Powell's speech, dipped slightly to $61,300 during the speech. As of writing, the Bitcoin trading price is $61,804.

Powell's remarks provide insight into the Federal Reserve's stance on the economy and inflation, influencing market sentiment and potentially impacting asset prices in the near term. As investors digest this information, they will closely monitor developments in the US economy and the Fed's monetary policy decisions.