Federal Reserve Chair Jerome Powell recently discussed significant economic indicators that should be on investors’ radar. His comments at the Federal Reserve meeting suggested a cautious approach to economic optimism and hinted at maintaining this stance into the March meeting. Market participants are starting to accept the possibility of a 75 basis point decrease in annual rate cuts barring any notable data improvements.
Economic Figures Under Scrutiny
Bitcoin and other cryptocurrencies are keenly observing the latest economic figures released, particularly average hourly earnings, non-farm employment, and unemployment data in the US. Powell underscored the Fed’s readiness to reduce interest rates should there be unexpected weakness in employment, although he doesn’t foresee such developments. Access NEWSLINKER to get the latest technology news.
Crypto Market Awaits Employment Data
The significance of upcoming employment data is heightened, with crypto investors eagerly anticipating the release. There were projections for the unemployment rate to inch up to 3.8% from 3.7%, and the estimate for Non-Farm Employment was 185K, down from the previous 216K. Wage growth was estimated to hit an annual rate of 4.1%, barring any extraordinary increases.
However, the actual data released painted a different picture. Unemployment remained at 3.7%, defying the expected 3.8%. Hourly earnings rose to 4.5%, surpassing the 4.1% forecast and previous rate. Notably, Non-Farm Employment surged to 353K, significantly exceeding estimates. This robust employment data, especially the considerable increase in hourly earnings, could negatively impact inflation reduction efforts and challenge expectations for an imminent rate cut. With Powell signaling no relaxation in employment, the strong data may lead to a downward trend in BTC prices in the near future.