Digital assets rose Wednesday during Powell’s testimony before Congress because there were some glimmers for optimism, including that the Fed:
1. Was “strongly committed to bringing inflation back down,”
2. Could slow the pace of interest rate hikes, when there is evidence of a slowdown in growth
3. Pledged to be nimble, (meaning) they might not be too aggressive with tightening once they believe the economy has significantly weakened
4. Opined that recession or no recession was a flip of the coin
Powell is a slippery eel imo … his role is to white lie, cajole, obfuscate, confuse and throw out so many scenarios he can never be entirely wrong … although he has done wrong so well inflation has risen relentlessly to 8.6%.
