Federal Reserve Chair Jerome Powell highlighted the challenges the central bank faces in balancing price stability with employment mandates. At a recent economic luncheon, he noted that while unemployment remains low, job gains are slowing, and risks to employment have increased. Powell mentioned that inflation has also risen but suggested that the impact of trade tariffs will likely only result in temporary price increases. Vice Chair Michelle Bowman echoed these sentiments, expressing concern over the weakening labor market amid overall economic resilience. The Fed recently cut interest rates by 25 basis points, a move that may not be isolated, as analysts predict further cuts in its upcoming meetings. Expectations of additional monetary easing have lifted various risk assets, although the cryptocurrency market has experienced recent declines. Despite this, analysts believe that a rebound is possible, especially for Bitcoin, as institutional demand remains strong, evidenced by significant inflows into the crypto market. Discussions surrounding the Fed's policy shift could further influence crypto prices in the near future.

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