Bitcoin Rises to $23.3K as Jerome Powell Repeats 'Disinflationary Process' Comment
The Fed chair spoke days after the central bank last hiked interest rates.
While the "disinflationary process" has started, it will take a good deal of time before the U.S. Federal Reserve is ready to declare victory in its fight against rising price levels, said Chairman Jerome Powell, discussing the economy with Carlyle Group co-founder David Rubenstein.
Rubenstein wasted no time in the interview, leading off by asking if Friday's blowout jobs report (517,000 jobs added) might have changed the Fed's decision two days earlier to hike its benchmark federal funds rate by just 25 basis points. Powell said the news wouldn't have been likely to have made a difference.
Powell's post-meeting press conference last week was notable for sending both traditional markets and bitcoin (BTC) sharply higher when he said the "disinflationary process has started." He stuck with that phrase on Tuesday afternoon, but emphasized that the process is only starting and more rate hikes will be necessary.
On the whole, it's hard to read Powell's comments as dovish, but markets may have been expecting a more hawkish tilt given this was the Fed chair's first chance to make public remarks following Friday's jobs report.
Nevertheless, bitcoin is ahead by about $300 since the interview began, now trading at $23,300. Traditional markets are also reacting, with the Nasdaq up 1.5% and the S&P 500 by 1.1%; the 10-year Treasury yield is lower by four basis points to 3.61%.
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