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As the turmoil in the cryptocurrency market continues, Fed member Hammack’s recent statements add fuel to the fire, further accelerating the decline in digital currencies. Anticipated since the end of July, the downturn has gripped the markets, as Hammack bluntly addresses investors with hard truths. The prevailing market conditions were predicted to lead to a drop that would begin in August, reflecting Hammack’s predictions.
Fed member Hammack highlights how tariffs have exacerbated inflation and reiterates that an interest rate cut is not feasible in this scenario. It is expected that Fed Chairman Powell will echo similar sentiments tomorrow, likely resulting in further declines in cryptocurrencies. Despite preliminary PMI data suggesting no major economic issues following employment data that had been overshadowed by the PPI report, inflation woes persist. Hammack’s warnings echo in the economic discourse.
“The economic theory concerning the one-time tariff impact might be invalid. The primary concern is the high and erratic inflation direction.
Labor demand might be decreasing, but labor supply is also on the decline. Despite the slowdown, the labor market might still be balanced. We will evaluate labor data within the broader economic changes context.
We are falling short on inflation. Our focus needs realignment. The unemployment rate remains one of our best indicators. More progress is necessary to reach neutral levels.
Based on current data, I see no rationale for a rate cut in September. No urgent justification exists for policy relaxation given current data.
I don’t perceive significant economic slowdown signs. I believe Fed policy isn’t far from neutral, negating the need for a stimulating policy.”
BTC could potentially break the $125,500 support level.
Hammack’s remarks suggest a persistent inflation threat with no immediate solutions in sight. His observation of labor dynamics indicates a fragile balance, potentially hampering economic recovery if not addressed urgently. As concerns about a major economic slowdown remain unfounded, Fed policies remain firm, discarding the need for additional stimulus actions.
Cryptocurrency enthusiasts are bracing for a tumultuous period as market foundations are questioned. The lack of anticipation for rate cuts underscores a challenging period ahead, with investors advised to remain cautious. As inflation continues to defy optimistic projections, market participants are left deciphering signals amid turbulent economic waves.
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By COINTURK NEWS
about 3 hours ago
