Powell’s Urgent Call: Why Patience Trumps Haste in Crypto

Federal Reserve Maintains Steady Stance Amid Economic Uncertainty

at the U.S. Monetary Policy Forum in New York, Federal Reserve Chair Jerome Powell outlined the central bank’s cautious approach. Powell stressed the importance of patience, saying, “We don’t need to rush and can wait for more clarity.”

He highlighted the strong U.S. labor market, with 151,000 jobs added in February. The unemployment rate is at 4.1%, showing stability. Wage growth has slowed to a sustainable level, easing inflation pressures.

Inflation has dropped from over 7% in mid-2022 to 2.5% by January. However,it’s still above the Fed’s 2% target. “Inflation can be unpredictable, so we won’t overreact to short-term changes,” he explained. The Fed will closely monitor trends to meet long-term goals.

Powell also discussed trade policies, noting recent shifts have caused market volatility. The Fed will wait for clearer economic signals before adjusting policies.The key interest rate is likely to stay unchanged in the coming months. The Fed cut rates by 100 basis points in late 2024 and kept it steady in January. He urged not overreacting to monthly fluctuations.

Trade policies, like tariffs on Mexico, Canada, and china, complicate the outlook. The Fed will stay patient,keeping the benchmark rate between 4.25% and 4.5%.

Crypto markets responded positively to Powell’s remarks. bitcoin is now at $88,300. Despite this, concerns about stagflation and Trump’s crypto summit linger. The Fed’s patient strategy reassures investors,but challenges remain.

• Job growth averaged 191,000 monthly since September.
• Unemployment is steady between 3.9% and 4.2%.
• Wage growth is moderating, balancing labor supply and demand.

For more, visit Fed’s policy page.