Fed Chairman Powell stated that inflation has eased while unemployment rates have not significantly increased. Inflation is still too high. The road ahead is uncertain. We have significantly tightened monetary policy.

The Federal Reserve FOMC statement: inflation has "eased somewhat" over the past year, but remains elevated. The median PCE inflation and core PCE inflation expectations for the end of 2024 have dropped to 2.4%. (Jin10)

According to a report from "New Fed Communications" journalist Nick Timiraos, the trend of slowing inflation in the United States continued into October, and the Federal Reserve may have completed its current cycle of interest rate hikes. Timiraos said that the October employment and inflation reports strongly suggest that the Fed's last interest rate hike occurred in July. The focus of the next Fed meeting debate may not be whether to raise interest rates again, but rather whether and how to modify the guidance in the post-meeting statement to reflect recent progress in inflation and the increasingly dim prospects for further interest rate hikes. If the Fed keeps rates unchanged next month, it is expected to extend the current pause in interest rate hikes to about six months.

US President Biden stated in a declaration that the US has made more progress in reducing inflation.

US stocks experienced a decline today due to higher-than-expected inflation data released by the US Bureau of Labor Statistics. The Dow Jones Industrial Average fell by 0.51%, the S&P 500 declined by 0.62%, and the Nasdaq index lost 0.63%. The increase in inflation could lead to the Federal Reserve keeping interest rates elevated for a longer period of time to control it. However, some retail-sector companies, such as Wallgreens and Dollar General, saw gains despite the overall market decline. Other market movements included a rise in US Treasury yields and a slight increase in oil prices.

On September 12th, dYdX founder Antonio Juliano posted on X platform stating that there is currently no plan to compensate validators on the dYdX Chain through additional inflation, and that the existing token distribution model will be used after the launch of dYdX Chain (inflation has been reduced by more than 60%). Soon, dYdX Chain will become the Layer1 closest to Ethereum in terms of the sustainability of the token economic model.

Federal Reserve Meeting Minutes - Inflation risks may require further policy tightening. Two Fed officials lean towards keeping rates stable in July. Most Fed officials believe there is a "significant" upward risk to inflation.

According to Goldman Sachs economists, the Federal Reserve is expected to begin cutting interest rates before the end of June 2024 and gradually lower rates on a quarterly basis from then on. Goldman Sachs economists, including Jan Hatzius and David Mericle, wrote in a report last Sunday, "We have lowered our expectations because once inflation approaches its target, we want to normalize fund rates from restrictive levels.

Despite inflation decreasing faster than anticipated and a low unemployment rate, there are still three leading economic indicators that suggest a potential recession: yield curve inversion, leading economic indicators (LEI), and the purchasing managers' index (PMI). The Federal Reserve's upcoming monetary policy tightening and interest rate hikes for 2023 pose a challenge as being too strict could lead to a recession, while being too lenient could trigger high inflation. The decisions made by the Federal Reserve will reveal economic confidence and could impact cryptocurrency and risk-on markets. This article serves as general information and should not be taken as legal or investment advice. The author's opinions do not necessarily align with those of Cointelegraph.

Bitcoin's price remained steady on Friday following the Bank of Japan's announcement of a more flexible approach to monetary policy. The digital asset has been trading within a narrow range for over a month, hovering between $29,000 and $31,500. The BOJ's decision to loosen yield curve control could lead to higher interest rates, which may pose challenges for risk assets like bitcoin. The announcement caused market fluctuations in Asia and Europe, while Wall Street saw a rise after a lower-than-expected inflation reading. The BOJ's policy move could allow for a rate increase on 10-year Japanese Government bonds.