On May 16, COINOTAG reported insights from Federal Reserve Chairman Jerome Powell, highlighting a critical reassessment of the Fed’s monetary policy framework. This strategic review aims to adapt language for enhanced flexibility in managing inflation and supply shocks. Powell indicated that the findings are anticipated to be finalized within several months. The April Personal Consumption Expenditures (PCE) inflation rate stands at 2.2%, reflecting effective measures in inflation containment. The Fed’s current approach has led to the achievement of a “soft landing,” marking a unique positive outcome in turbulent economic conditions.
In light of these developments, analysts from Bitunix suggest that the anticipated policy adjustments may stabilize market expectations and alleviate pressure on interest rate hikes. This easing trend is likely to favor risk assets, including cryptocurrencies. With inflation showing signs of stabilization, the outlook turns moderately bullish for the crypto market. Traders are advised to monitor Bitcoin’s support around the $100K threshold, as its ability to hold that level could influence resistance, notably at $105K. Attention should also be directed toward Ethereum, ecosystem coins, and inflation-resistant tokens that are highly responsive to such policy shifts.