Powell: No confidence in when to cut interest rates, slow down QT in June! Bitcoin and Ethereum flush up and down

This site (120BtC.coM): Against the background of stagnant progress in combating inflation in the United States and continued booming economy, the Federal Reserve (Fed) decided after a two-day decision-making meeting Keep the federal funds rate at 5.25-5.5%. (Sixth consecutive frozen increase)

Basically, the result is in line with market expectations. Federal Reserve Chairman Jerome Powell also admitted frankly at the press conference after the meeting: As far as interest rate cuts are concerned, gaining confidence will It will take longer than originally thought... It is not known when the central bank will be confident enough to start cutting interest rates.

Ruling out the possibility of raising interest rates and slowing QT

At the same time, Powell also sent a dovish signal. He bluntly stated that the next move by the Federal Reserve is unlikely to be to raise interest rates.

"I think the next change in policy rates is unlikely to be a rate hike... I would say it's unlikely."

When asked what scenarios would lead to a rate hike? He responded: "I think we need to see convincing evidence that our policy stance is not restrictive enough to sustainably reduce inflation to 2% over time, but that's not what we're seeing right now. "

In addition, the Federal Reserve will also begin to slow down the pace of balance sheet reduction in June, and will slow down the reduction of U.S. debt holdings to US$25 billion per month, and maintain US$35 billion in mortgage guarantees. Securities (MBS) caps remain unchanged.

David Kelly, chief global strategist at JP Morgan Asset Management, said: The Fed has cut the pace of balance sheet reduction in half... This does indicate that they are trying to send a message here that they will not be too hawkish, which makes some People are more confident that the Fed will raise interest rates again, but will eventually cut interest rates this year.

Bitcoin and Ethereum are flushing up and down

In terms of the crypto market, Bitcoin has been volatile. Before the interest rate announcement and Powell's press conference, BTC once rose from $56,604 to $59,487. However, after the news was announced, it quickly plummeted again, giving up almost all of its gains.

After Powell released dovish remarks, BTC slowly fluctuated higher. At the time of writing, it was trading at US$57,840, down 3.46% in the past 24 hours.

Ethereum's decline was lower. After hitting a maximum of $3,016 at about the same time, it was reported at $2,952 at the time of writing, down 1.24% in the past 24 hours.

CoinMarkeCap ​​data shows that the other top ten coins were mixed. Among them, SOL and XRP increased by 4.8% and 3.9% respectively in the past 24 hours. The biggest decline was TON, which fell 6.19%.

US stock market shocks

The four major U.S. stock indexes also fluctuated greatly (on the 1st). Stimulated by Ball's dovish remarks, the Dow Jones once rose by more than 530 points and ended in the red at 87.37 points. But the four major indexes were mixed, weighed down by a sell-off in chip stocks and energy stocks.

The Dow Jones index rose 87.37 points, or 0.23%, to close at 37,903.29 points.

The Nasdaq fell 52.34 points, or 0.33%, to close at 15,605.48 points.

The S&P 500 index fell 17.3 points, or 0.34%, to close at 5,018.39 points.

The Philadelphia Semiconductor Index fell 165.62 points, or 3.54%, to close at 4,507.68 points.

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