The post Fed’s Policy Stance Tightens Amid Inflation and Labor Market Strain appeared on BitcoinEthereumNews.com.

Key Points: Fed maintains tightening stance amid rising inflation and labor market pressure. Policy impacts macroeconomics, increasing risk-off moves on crypto assets. Inflation stoked by tariffs, with continued effects into early next year. On November 14, Federal Reserve’s Patrick Harker announced that the weakening labor market and high inflation impact the Fed’s mandate, necessitating persistent policy tightening to address economic challenges. Sustained inflation and market stress could destabilize digital assets like BTC and ETH, reflecting broader uncertainties in economic policy and market response. Fed Policy Measures Amid Inflationary Pressures Federal Reserve officials including Patrick Harker have indicated continued policy tightening is necessary to curb inflationary pressures, despite a weakening labor market. Harker emphasized that the ongoing inflation trends remained above the Fed’s 2% target, driving a need for sustained action. With inflation expected to remain elevated due to tariffs, the Federal Reserve’s monetary policy stance remains tight. The goal is to bring inflation back to targeted levels over the next two years, while managing risks in the labor market. “To be sure, inflation has remained elevated and somewhat sticky over the past several months, both in the overall and core figures. But that notwithstanding, I do believe that our current positioning will bring inflation back to target, in the next two years if conditions broadly evolve as I expect.” — Patrick T. Harker, President & CEO, Federal Reserve Bank of Philadelphia. Market reactions to the Fed’s position have included increased uncertainty in various sectors. Both Harker and Raphael Bostic underscored the strain on the economic mandate, affecting assets like BTC and ETH through risk-off moves. No immediate reactions were found among crypto leaders. Bitcoin and Ethereum Volatility Amid Fed Strategy Did you know? In periods of macroeconomic uncertainty in 2022, crypto assets experienced heightened volatility, mirroring current trends with BTC…

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Filed under: News - @ November 13, 2025 9:25 pm