Inflation Running Higher Than Expected
Federal Reserve Chairman Jerome Powell warned on Tuesday that inflationary pressures are running higher than expected, according to his prepared remarks before the U.S. Senate Banking Committee. This announcement caused Bitcoin to fall about 1.6% to below $22,000 initially, but the price has since bounced back to $22,100. Meanwhile, the S&P 500 was down 0.75%. Powell acknowledged that unseasonably warm weather in January may be responsible for the higher-than-expected inflation figures, but he cautioned that the process of returning inflation to the Fed’s target of 2% “has a long way to go and is likely to be bumpy.”
Bitcoin Falls Amidst Powell’s Inflation Warning
In the aftermath of Federal Reserve Chairman Jerome Powell’s announcement that inflationary pressures are running higher than expected, Bitcoin (BTC) fell about 1.6% to below $22,000. The cryptocurrency market has since recovered slightly, with the price of Bitcoin trading at $22,100, while the S&P 500 was down 0.75%. Powell acknowledged that January’s higher-than-expected inflation figures could be attributed to unseasonably warm weather, but he also emphasized that the process of returning inflation to the Fed’s target of 2% “has a long way to go and is likely to be bumpy.”
Source: CoinDesk
