Federal Reserve Chair Jerome Powell announced that future interest rate cuts will depend on labor market conditions, following a post-FOMC meeting in January 2026. The Federal Reserve has maintained the interest rate between 3½ and 3¾% after a 75 basis point reduction since September 2024. Powell emphasized the importance of incoming data in guiding monetary policy, aiming to support maximum employment and a 2% inflation target.
Powell's remarks suggest that financial markets, including cryptocurrencies, should prepare for data-driven rate changes that could impact their value and stability. The decision to stabilize rates highlights the need for vigilance regarding labor market signals, as the Federal Reserve seeks to manage inflation and employment without political interference. Investors are closely monitoring economic indicators, such as employment statistics, to anticipate potential shifts in economic policy.
Fed Chair Powell Links Future Rate Cuts to Labor Market Data
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