Federal Reserve Chairman Jerome Powell gave a speech regarding the state of the economy and answered questions, causing positive movement in the market. The Fed raised rates by 25 basis points, though the stock and crypto markets remained unaffected. Instead, market movement was attributed to Powell’s speech. However, caution is advised when investing, as some companies are still losing money while others are shedding jobs. The Fed’s dual mandate of keeping unemployment low and inflation at 2% is still the focus. Bets Recruiting is looking to help people find tech jobs in a time of layoffs and is offering tokens for using their platform. Powell says the housing sector is weakening, GDP growth has declined, but the labor market remains tight.
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Jerome Powell’s speech and market reaction
Introduction
Jerome Powell, Chairman of the Federal Reserve, recently gave a speech and offered insights on how they view the economy, the stock market, and the crypto market. This article explores Powell’s speech and the market reaction to it.
The Fed’s Decision
The Fed raised rates by 25 basis points, which was expected by the market. Interestingly, the stock market and the crypto market did not move much on this news. The market started to move after Powell’s speech, where he provided a cautiously optimistic view of the economy.
Market Reaction
The market reacted positively to Powell’s speech. However, investors need to be careful as there are still many big earnings reports to come. It is wise to avoid jumping into any stock blindly because there are still many factors that can significantly influence the market.
Crypto Market
It’s important to note that when we talk about the market, we don’t just mean the stock market. The crypto market has also been rallying recently. However, investors need to be smart about this and make informed decisions, even if the Fed switches and the market rallies.
Companies’ Outlooks
There are still many stocks that are exploding now, like Peloton, which is up nearly 100% year-to-date. However, Peloton is still losing $100 million, raising concerns among investors. Therefore, investors should not jump into any stock just because they are seeing significant movement.
The Fed’s Dual Mandate
The Fed has a dual mandate of trying to keep inflation at a certain level (2%) and keeping unemployment low. The recent layoffs in tech companies, such as Peloton, PayPal, and Rivian, signify the pressure to keep unemployment low.
Bets Recruiting
Bets Recruiting, a company that has been around for 14 years with a focus on recruiting talent for the tech industry, is now branching into cryptocurrency. They are offering a reward system using their platform, where members can receive tokens for referring people, interviewing, or joining a network.
The Fed Press Release
The Fed’s recent press release said inflation has eased somewhat, but it still remains elevated. They have also changed the wording from “determining the pace” to “determining the extent” of future increases. The market is presently pricing in a 25 basis point hike, but it remains to be seen how it will play out.
Conclusion
Jerome Powell’s speech provides investors with some grounds for cautious optimism. Nevertheless, there are significant changes coming with the pending earnings reports and significant layoffs in tech companies. Investors must remain vigilant and make informed decisions despite the market movements.
