The much-anticipated speech on inflation control by Federal Reserve Chair Jerome Powell took place via webinar at the Jackson Hold symposium on Thursday, Aug 27—and revealed the US central bank is prepared to let inflation rise above its traditional 2% target but did not rule out further quantitative easing.
Despite the implication of the Federal Reserve that it will “flexibly” allow inflation to run higher than usual for the next few years, the Bitcoin price and the gold price immediately dipped at the announcement. But shouldn’t higher inflation mean a weaker dollar and a rise in the BTC price and the gold price?
The rationale could be that Bitcoin and Gold were already consolidating due to the bitcoin price and gold price rallies over the last couple of months. Currently the United States national debt stands at $26.5 trillion and Goldman Sachs recently warned that the dollar is in serious danger of losing its global reserve currency status—and a loss of value in the dollar should equate to a rise in Gold and Bitcoin safe haven asset prices rising.