Powell’s FOMC Remarks and Their Impact on Crypto Liquidity
- Jerome Powell indicated that a December rate cut is uncertain, causing market volatility.
- The Federal Reserve cut its policy rate by 25 basis points to a target range of 3.75%–4.00%.
- The Fed will halt quantitative tightening on December 1, reinvesting in Treasury bills.
- Thompson suggests Powell’s comments were political leverage, not a hawkish signal.
- Ending QT early was unexpected and seen as liquidity positive for crypto.
Powell’s recent comments have introduced uncertainty about future rate cuts while emphasizing the importance of government data flow resuming post-shutdown. This shift in monetary policy stance is crucial for crypto investors as it signals potential liquidity improvements with the end of quantitative tightening.
