WASHINGTON — Federal Reserve officials left interest rates unchanged at their first meeting of 2020 on Wednesday, upholding their patient stance after an … Some analysts interpreted his wary tone as a sign that the Fed was still oriented more toward cutting rates than raising them. Mr. Powell declined to speculate on whether that was the case in his comments, saying that “it’s very hard to say what is affecting financial markets with any precision or confidence at a given time.” The Federal Reserve’s decision to keep rates unchanged at its first 2020 meeting was unanimous. This had far-reaching implications, influencing the price of assets like gold, crypto, and equities.This decline was fleeting, as bulls have since erased virtually all of the losses that came about as a result of this movement.Despite the inflation news not having any positive short-term impacts on Bitcoin, the CEO of FinTech company Ripple believes that it will help direct heightened focus to crypto going forward – providing the entire market with a significant boost.The massive money printing that has been undertaken by the U.S. government was bound to lead to heightened inflation.This is being done to help support the economy, as it will allow for heightened money printing in the form of direct stimulus, bond repos, and quantitative easing.Naturally, the benchmark crypto’s absolute scarcity makes it the obvious alternative to the US Dollar as a store of value, as the fiat currency will now degrade in value on an annual basis at a pace higher than ever seen before.Investors looking to preserve their capital will now need to find assets that have scarcity and can appreciate at a rate higher than the 2%+ inflation.While speaking about the news regarding the Fed’s decision, Ripple CEO Brad Garlinghouse He notes explicitly that the nascent asset class will be boosted by global investors looking to diversify their portfolios to avoid unnecessary exposure to USD.“The pandemic is throwing so many playbooks out the window… yesterday’s action flies in the face of decades of precedent. Fed Interest Rate Decision Discussion Comment Guidelines We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. In a purely technical tweak, the central bank did nudge up the interest rates it pays on excess reserves — bank deposits stashed at the Fed. Fed policymakers themselves do not expect it to eclipse 2 percent this year, based on their most recent set of economic projections.Mr.
“That is a discussion for well after the economy is on the other side of Covid-19. While those programs, known as quantitative easing, were meant to bolster the economy, the new interventions have been structured differently and are simply meant to fix a market-plumbing problem.
On this new monetary policy framework, the Fed is likely to keep short-term interest rates near zero for five years or possibly more. Says health crisis to weigh heavily on economic activity The rate sets the … As markets opened for a new week, August COMEX gold futures were...We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. Fed Holds Rates Steady, Reiterates Support Amid Surging Cases By Investing.com - Jul 29, 2020. Currently, the pair is trading at 1.3371, down 0.05% on the day. In a bold, emergency action to support the economy during the coronavirus pandemic, the Federal Reserve on Sunday announced it would cut its target interest rate near zero.
Fed cautions virus to have substantial impact over medium term Traders watch interest rate changes closely as short term interest rates are the primary factor in currency valuation.© 2007-2020 Fusion Media Limited. Investing.com -- As Congress continues to debate more fiscal aid the Federal Reserve will likely hold fire at the conclusion of its policy meeting Wednesday but stick to a cautious...Will gold get back to $2,000 an ounce this week? This had far-reaching implications, influencing … Central bankers do not expect to cut interest rates as long as the economy shapes up as expected, and do not intend to raise them unless inflation moves up and stays there.That is unlikely to sit well with President Trump, who has been pushing the central bank to slash rates further. Federal Reserve Chairman Jerome Powell urged lawmakers to deliver more fiscal stimulus to shield the U.S. economy from the coronavirus as he warned of a weak recovery even once the pandemic passes.“Economic activity will likely drop at an unprecedented rate in the second quarter,” Powell told a video press conference Wednesday. in Crypto, Industry News.
Investors have turned a skeptical eye on that claim, and equity analysts regularly argue that the purchases are pushing up stock prices, as markets take a cue from the Fed to buy. 2 min read The Federal Reserve Chairman Jerome Powell made a shocking announcement during yesterday’s widely watched speech, in which he noted that the Fed will be allowing inflation to start running past 2%. The decision marked the second straight meeting the Fed made no changes to rates following three consecutive reductions in 2019.
Powell has now signaled that the central bank does not plan move policy in either direction unless something fundamentally shifts. Signs point to further dollar debasement in the near term (leading to further diversification of assets which will certainly be good for crypto).”It is crucial to keep in mind that these benefits are all long-term and that the implications of the Fed’s decision will likely have a muted short-term impact on the crypto market.Blockchain technology to give Aussie dairy a competitive edge | Farm OnlineChina Has 44,000 Blockchain Firms but Faces a Big Tech Talent Deficit
Powell said the Fed was “not comfortable with inflation running persistently below our 2 percent symmetric objective.”“In theory, inflation should be moving up,” he added, given that the United States economy is in its 11th year of an expansion and unemployment is very low, at 3.5 percent. Your status will be reviewed by our moderators.Please wait a minute before you try to comment again.