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Jerome Powell’s speech at the Fed’s International Finance (IF) Division anniversary conference quietly signaled the central bank’s growing openness to easing monetary policy. This prospective shift has sent Bitcoin (BTC) soaring above $105,000. Meanwhile, the Federal Reserve (Fed) continues to work against political pressure from President Trump, who advocates for rate cuts. This contention has sparked speculation of Powell’s imminent resignation. Bitcoin Surges as IF Models Point to Dollar Weakness Bitcoin surged past $105,000 on Monday, buoyed by growing expectations that the Federal Reserve may be preparing to pivot its monetary policy stance later this year. The rally followed Federal Reserve Chair Jerome Powell’s speech at the International Finance (IF) Division’s 75th anniversary conference. Powell reiterated the critical role of global data and modeling in shaping US monetary policy in his speech. However, he did not directly signal any change in interest rates. While Powell’s remarks were framed as a tribute to the IF Division’s legacy, analysts and crypto investors parsed his words for policy clues amid mounting signs of disinflation and economic resilience. “Understanding this complex and interconnected web is essential for us to anticipate the path of employment and inflation,” Powell said. Although Powell did not mention easing or rate cuts, he emphasized that IF research is central to the “risks and uncertainty assessment that FOMC committee participants receive in advance of every meeting.” That line, coupled with the Fed Chair’s comment that the division’s work is “certainly relevant today,” has sparked speculation that the Fed is preparing for a potential dovish shift if current economic trends continue. Fed’s Global Lens Aligns with Market Tailwinds The latest Consumer Price Index (CPI) data showed inflation cooling to just 2.3% year-over-year, nearing the Fed’s 2% target. At the same time, US unemployment remains steady at around 4.2%, suggesting the labor…

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Filed under: News - @ June 3, 2025 6:23 am