Affected By The Fed's Policy, Crypto Market Returns

Chairman of The Fed Jerome Powell. (Photo; Doc. Blockmedia)

JAKARTA - Jerome Powell, Chairman of the Federal Reserve or better known as Fed, gave his opening address at the FOMC Press Conference. In his speech, Powell emphasized that the committee is very committed to achieving an inflationary target of 2 percent.

For information, the FOMC (Federal Open Market Committee) is a committee responsible for making monetary policy in the United States, such as determining interest rates.

Powell explained that price stability is the main foundation in the economy. He also stated that the current price increase is the right thing to return inflation rates to 2 percent. This is done to avoid premature action and slow down measures in loosening policies.

According to Powell, history has given a stern warning of easing too quickly. He promised to stay insist until work is over. The market reaction to Powell's speech, the crypto market experienced a 1 percent drop in the price of Bitcoin and Ethereum.

It takes time

According to a Coingape report, Powell revealed that the central bank needed time to realize the effects of its tightening measures and that they would remain on track until work was completed.

Powell added that although inflation has been reduced recently, it is currently still too high. He asked for more evidence to ensure that inflation is on a continuing downward path.

The US Federal Reserve decided to raise interest rates by 25 basis points in February. This decision can be understood as a slowdown in central banks' efforts to reduce inflation. However, Powell said that further interest rates will be raised in the next few months.

The market reaction to the interest rate hike decision varied. The US Dollar Index (DXY) recovered slightly after the previous decline, while the crypto market reacted positively. Currently, the price of Bitcoin (BTC) rose 0.49 percent to 23,192 US dollars. The US Dollar Index is currently down 0.24 percent to 101.85.