BTCUSDT: Bitcoin Surges 4.5% as Stocks Dip on Hawkish Fed Remarks
The Minnea polis FED President Neel Kashkari said there will be a rate cuts in this year based on inflation downtrend and Job numbers. If inflation did not move down then no rate cuts in this year. I expected 2 rate cuts if inflation moving down as per current scenario. The Hawkish message from FED member moved US Dollar higher against Bitcoin last day.
BTCUSDT is moving in Symmetrical Triangle
On a day marked by divergent market movements, cryptocurrency enthusiasts found cause for celebration as stocks experienced a late-session decline in the U.S. trading session, while Bitcoin (BTC) managed to recover most of its losses incurred earlier in the week.
Towards the end of the afternoon trading session, both the S&P 500 and Nasdaq indices saw declines of nearly 1%, constituting a notable reversal from earlier session highs, amounting to approximately a 2% downturn. The catalyst behind this downward shift was attributed to hawkish remarks made by Neel Kashkari, the President of the Minneapolis Fed, during a virtual event hosted on LinkedIn.
Kashkari’s comments, expressing skepticism about the necessity of rate cuts in the face of stable inflation, contrasted with the sentiments echoed by Fed Chairman Jerome Powell the previous day, who had indicated an expectation for rate cuts sometime within the year. Although Kashkari’s stance wasn’t entirely unexpected given his hawkish inclinations, the stock market swiftly reacted to the downside in response.
However, the clarity on the rate outlook might await Friday’s release of the government’s March employment data. Despite hopes that weakening job numbers might prompt the Fed to hasten its rate cut cycle, such expectations have consistently been thwarted by robust employment growth figures throughout 2023 and the early months of 2024.
Economists anticipate the addition of 200,000 jobs in March, a strong figure albeit lower than the 275,000 jobs added in February. The unemployment rate is forecasted to remain stable at 3.9%.
BTCUSDT: Kashkari: 2024 Rate Cuts at Risk if Inflation Stalls
The Minnea polis FED President Neel Kashkari said there will be a rate cuts in this year based on inflation downtrend and Job numbers. If inflation did not move down then no rate cuts in this year. I expected 2 rate cuts if inflation moving down as per current scenario. The Hawkish message from FED member moved US Dollar higher against Bitcoin last day.
BTCUSDT is moving in Ascending channel and market has reached higher high area of the channel
During an interview with Pensions & Investments on Thursday, Neel Kashkari, the President of the Minneapolis Federal Reserve Bank, revealed that during the central bank’s meeting last month, he had initially projected two interest rate cuts for this year. However, he suggested that if inflation continues to stall, these cuts may not be necessary by the end of the year.
Kashkari expressed his concern, stating, “If we continue to see inflation moving sideways, then that would make me question whether we need to do those rate cuts at all.” He emphasized the current momentum in the economy.
Additionally, Kashkari indicated that if inflation persists stronger than anticipated, the Federal Reserve might opt to maintain its benchmark policy rate within the current range of 5.25% to 5.50% for a more extended period.
He further clarified that while further rate hikes are not entirely ruled out, they are not likely at the moment, given the current circumstances.
BTCUSDT: Minneapolis Fed’s Kashkari Hints at Rate Cut Pause
The Minnea polis FED President Neel Kashkari said there will be a rate cuts in this year based on inflation downtrend and Job numbers. If inflation did not move down then no rate cuts in this year. I expected 2 rate cuts if inflation moving down as per current scenario. The Hawkish message from FED member moved US Dollar higher against Bitcoin last day.
BTCUSDT has broken Ascending channel in Upside
During a virtual event hosted by LinkedIn on Thursday, April 4, Neel Kashkari, the President of the Federal Reserve Bank of Minneapolis, hinted that the central bank might refrain from cutting interest rates this year if inflation fails to progress towards the 2 percent target, according to a report by Bloomberg.
Kashkari struck a cautious tone regarding potential rate cuts in the coming months, stating, “If we continue to see inflation moving sideways, then that would make me question whether we needed to do those rate cuts at all.”
The Fed official expressed concerns about recent inflation readings for January and February, describing them as “a little bit concerning.” He emphasized the necessity of observing further evidence indicating a downward trend in prices before considering a shift in monetary policy.
Despite not having a vote on the rate-setting Federal Open Market Committee this year, Kashkari had previously outlined the possibility of two rate cuts in 2024, contingent upon inflation trends. He disclosed, “In March, I had jotted down two rate cuts this year if inflation continues to fall back towards our 2% target.”
Emphasizing a data-driven approach, Kashkari highlighted the importance of allowing inflation data to inform the Fed’s decisions on interest rates in the future.
These remarks from the Minneapolis Fed chief mirror his stance from a recent event last month, where he questioned the necessity of taking action in a scenario where economic indicators, such as job growth and business performance, are positive and inflation is trending downwards.
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