The speech of the head of the U.S. Federal Reserve and its impact on the digital asset market

Speech of the head of the Federal Reserve System of the USA

Today, an important speech by the head of the Federal Reserve System of the USA is expected. It will take place at 17:00 Kyiv time, 18:00 Moscow time, and 21:00 Astana time. The head of the Fed will present a report on monetary policy in the US House of Representatives, where the majority of seats are held by Republicans. It is expected that the dialogue may not be easy.

Potential Impact on the Digital Asset Market

Although this event could potentially lead to increased volatility in the digital assets market (), it is important to note that this speech is not related to a decision on interest rates, which typically reduces its impact on the markets. Moreover, the main points have already been published in advance, and so far the markets have not shown a significant reaction to this information.

Key points of the upcoming presentation

The preliminary published theses of the Fed chair's speech generally repeat his previous statements. According to them, the interest rate is likely at its peak in the current tightening cycle, although economic prospects remain uncertain, and progress towards achieving the 2% inflation target is not guaranteed. In the event of favorable economic developments, the Fed chair considers it appropriate to begin lowering rates this year, but emphasizes the risks of both premature actions that could negate the progress made and delayed measures that could unjustifiably weaken economic activity and employment.

Market Expectations

Despite the fact that no significant surprises are expected from the Fed Chair's remarks, market participants are advised to be prepared for potential increased volatility. Leading financial publications have already reacted to the published theses, noting that the Fed Chair again emphasizes the need for greater confidence in the decline of inflation before easing monetary policy.