Shiba Inu (SHIB), Cardano (ADA), XRP, and other altcoins saw a rise in value following a speech by Federal Reserve Chair Jerome Powell. Powell dismissed concerns about stagflation, stating that he did not see signs of slow economic growth coupled with high inflation. JPMorgan CEO Jamie Dimon had previously expressed worries about stagflation, comparing the current economic situation to the 1970s.
In response to Powell’s speech, investor Jeffrey Gundlach predicted only one rate cut this year and doubted a cut in June. Powell mentioned the possibility of rate cuts due to unexpected weaknesses in the labor market, but emphasized that any decision would depend on inflation data. The Fed aims to bring inflation back to 2% before considering rate cuts.
Interest rate futures are predicting a single rate cut in 2024, with the first cut expected in September. The cryptocurrency market has been negatively impacted by the Fed’s change in stance, with Bitcoin experiencing its worst monthly performance since August 2023. Previously, the Fed was expected to implement multiple rate cuts this year.