Powell’s ‘doves’ boost risk assets Bitcoin rises more than 8% above $23,000

Federal Reserve Chairman Jerome Powell said at a press conference following the interest rate resolution on Wednesday that it may be appropriate to slow the pace of interest rate hikes at some point as the stance of monetary policy tightens further, but the Fed has not yet decided when it will begin to slow the pace of rate hikes. Powell's dovish wording boosted risk assets.

Jack Ablin, chief investment officer at Cresset Capital, said: "Investors believe Powell and the Fed's monetary moves will depress inflation. Falling food and energy prices are evidence that inflation peaked in June and July. While all eyes will be on the Fed today, the real show will begin on 10 August when US inflation data is released. We and the market are betting on a much weaker number."

However, Mark Gutman, chief investment officer at Ascent Systematic Advisors, said that despite the current elevated market sentiment, he reckons rates will move higher if the Fed fails to keep inflation under control.

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