The crypto and stock markets went on a wild ride Friday, thanks to a little nudge from the Federal Reserve. Fed Chair Jerome Powell, speaking at an economic conference in Wyoming, hinted that the Fed might soon start cutting interest rates.
Powell’s Words Spark Hope
Powell acknowledged that the economy is doing okay, but he also pointed out that inflation and the job market are showing some signs of weakness. He said the Fed is ready to adjust its policies to help the economy stay strong and get inflation back down to a healthy level.
“The time has come for policy to adjust,” Powell said. “We will do everything we can to support a strong labor market as we make further progress toward price stability.”
Crypto and Stocks Celebrate
The markets reacted enthusiastically to Powell’s comments. The total value of all cryptocurrencies jumped by 4.6% on Friday, with Bitcoin breaking through the $64,000 mark for the first time since August. The S&P 500, a major stock market index, also climbed by 1.15% on the same day.
What’s Next?
While Powell’s words have sparked optimism, it’s important to remember that the Fed’s future decisions will depend on how the economy performs. The Fed will be watching closely to see how inflation and the job market evolve.
