#PowellRemarks As Fed Chair Jerome Powell wrapped up his latest remarks on the economic outlook and monetary policy, it's clear the central bank is navigating a delicate tightrope.
Delivered just days ago at the National Association for Business Economics, Powell emphasized the Fed's progress in shrinking its massive balance sheet—from a pandemic-era peak to under 22% of GDP—while maintaining control over interest rates through the ample reserves framework.889bd1 This normalization isn't just housekeeping; it's a signal of confidence in the system's resilience, with reserves hovering around 10% of GDP and tools like the standing repo facility ready to smooth any liquidity bumps.
On the economy, the picture is steady but softening. Unemployment holds low, but payroll gains have slowed amid declining immigration and labor participation, raising downside risks to jobs.743c84 Inflation? Core PCE ticked up to 2.9% in August, nudged by tariff-driven goods prices, though longer-term expectations remain anchored at the 2% target—no runaway pressures in sight.eba45f Powell's forward guidance? Classic Fed: data-dependent, meeting-by-meeting decisions, no preset path. But markets are pricing in that quarter-point cut this month, with broader backing for easing into 2025 as employment risks mount.bec2ca
For investors and crypto traders, this spells opportunity amid volatility. Lower rates could fuel risk assets like Bitcoin and alts, especially if Trump's tariff talks with China ease trade tensions (as hinted in recent buzz).1842ff We've already seen $135M+ in liquidations this week—stay nimble, folks. The Fed's not rushing, but the pivot feels imminent. What's your take: bullish on BTC to $150K, or bracing for more chop? Let's discuss. #PowellRemarks #FedWatch #CryptoMarkets
