Bitcoin was about $21500 when Powell spoke at the Jackson Hole summit last year when US inflation was 8.5 percent and interest rates were 2.5 percent.
The Jackson Hole meeting is this week’s most significant market event. The banking sector keenly watches the annual convention, which is held at Jackson Hole, Wyoming, USA. Representatives from central banks in both developed and developing nations will gather on Friday, August 25, to discuss monetary policy.
The markets place a high value on this conference since it addressed the potential for shifts in national monetary policy.
There will also be a speech by Federal Reserve Chairman Jerome Powell. At the meeting, other central bank governors will listen intently to what the FED chairman has to say on inflation, the economy, and future interest rate hikes.
Bitcoin was about $21500 when Powell spoke at the Jackson Hole summit last year when US inflation was 8.5 percent and interest rates were 2.5 percent.
Bitcoin is at $26,000 before this year’s Jackson Hole summit, while US inflation is at 3.2% and interest rates are at 5.50%.
Last year at this time, Powell made the following remarks: High inflation is more likely to become permanent if it persists for an extended period of time. The September rate increase is conditional on new information. The Federal Reserve will not alter its stance as a result of July’s low inflation numbers.
The Federal Reserve has signaled that it may be forced to raise interest rates since the US economy is doing better than expected.
In their most recent investment note, analysts from Bank of America made the following claims about the Jackson Hole summit.
“As the danger of increasing inflation is highlighted by recent statistics, Powell may choose to bring a less balanced strategy to Jackson Hole.”
They did not expect Powell to provide any more guidance on the future of monetary policy, according to analysts at JP Morgan.
“We do not anticipate any new information on the future of monetary policy to emerge from the Jackson Hole meeting. If hyperinflation persists, Powell will likely reassure the public that policy would stay restrictive for as long as necessary.”
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