The long-awaited August 26th is the day that will bring about a significant shift in crypto market prices movements. The bears and the bulls will dominate the market today. But everyone still hopes for a reverse of the bearish trend.
Recall that the last announcement of inflation data didn’t push the market down. Investors saw price rises. But from this week’s price movement, it’s evident that the recovery has subsided.
After the Federal Reserve Annual Meeting, another move might occur.
Annual Meeting of the Federal Reserve
Each year the Federal Reserve holds a meeting that brings together many economists. Jackson Hole is the host for this meeting, which sees the central bank set its annual economic agenda.
During the meeting, the data regarding the US Personal Consumption Expenditure MoM (US Personal Consumption Expenditure MoM) will be presented. The crisis’s nature will be revealed by this critical data on inflation. These data also indicate whether or not people are spending less or more, which can be indicative of a healthy and unhealthy economy.
In addition to the announcement of Personal Consumption Expensive MoM, crypto markets are also anxious about Federal Reserve plans to curtail inflation. Interested investors can watch Jerome Powel’s speech on the Kansas City Federal YouTube channel.
Crypto Investors: Why should they be worried?
You may recall that Neel Kazhkari, CEO/President of Minneapolis Fed made remarks a few days ago expressing expectations for a Volcker-esque approach. History records that Paul Volcker was Federal Reserve Chairman in 1927. Volcker initiated two severe but brief recessions in order to stop inflation and force spending from rising.
Kashkari suggests that the Federal Reserve create recessions in order to curb inflation. Many in crypto have been concerned by Kashkari’s statements, as he is one of the Feds’ most dovish officials. It is also because James Bullard, President of St. Louis was the one who took the most aggressive stance before him.
So, the scale could be tipped to either side in today’s meeting. If Jerome Powell (current Federal Reserve chairman) agrees with other participants, then the crypto market may turn less bearish. However, if Powell decides to end inflation peacefully the crypto market can move more bullishly.
These expectations show that the Federal Reserve can create recession. The outcome of this meeting will now depend on Jerome Powell’s decision about how to address inflation.
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