In a recent statement, U.S. Federal Reserve Chair Jerome Powell expressed concern about inflation and stated that the central bank is prepared to increase interest rates further if necessary. Powell highlighted that while inflation has decreased from its peak, it is still too high and needs to move sustainably towards the Fed’s target of 2%. He emphasized the significance of core personal consumption expenditures (PCE) inflation, which excludes food and energy prices, and noted that it peaked at 5.4% in February 2022 before dropping to 4.3% in July. Powell also mentioned that although the decline in PCE inflation is positive news, it may not reflect the full inflationary picture, as food and energy prices are influenced by volatile global factors. The article also mentions that Bitcoin experienced a dip in price following Powell’s remarks.
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