A Different Powell Emerges: Fed Chair Softens Hawkish Tone On Interest Rates, Bitcoin
It wasn’t the same Fed Chair Jerome Powell who shook markets in December with a hawkish stance that unsettled investors. The version that appeared at the Fed’s January press conference was far more measured, cautious, and seemingly at ease with the path ahead.
Powell sidestepped the brewing clash over interest-rate policy sparked by President Donald Trump, opting to let time and economic data shape the Fed’s path ahead.
Notably, he didn’t rule out Bitcoin (CRYPTO: BTC) being adopted by commercial banks, marking a sharp U-turn from his previously allergic stance on crypto-related matters.
While the Federal Reserve’s decision to hold rates at 4.25%-4.50% was widely expected, Powell delivered remarks that helped stabilize investor sentiment in a volatile week shaken by the DeepSeek news.
Here’s what happened at the January’s press conference.
Not In A Hurry To Ease, But Let’s See How Things Evolve…
Powell signaled patience but not outright resistance to future cuts.
“If the economy remains strong and inflation does not continue to move sustainably toward 2%, we can maintain policy restraint for longer,” he said, while also indicating that weaker labor market conditions or faster-than-expected disinflation could warrant easing.
Notably, he indicated that recent inflation data has been encouraging.
“We don’t overreact to two good readings or two bad readings, but nonetheless, the last couple of readings have suggested more positive progress,” Powell said. “The expectation is that we …
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