U.S. President Joe Biden stated that the economy of the United States was “headed in the right direction” after the positive jobs report from the Bureau of Labor Statistics was recently made public. The report showed a substantial increase of 311K new jobs recorded for the month of February. Biden maintained his optimism regarding the possibility that the forthcoming interest rate hikes from the Federal Reserve would be more gradual and less aggressive.
Biden Hopeful Of Lowering Inflation
On Friday, Biden addressed the White House that inflation in the country had fallen to a level that is 30% lower than what it was in last summer. While hailing the nonfarm payroll data as a “good jobs report”, the U.S. President emphasized that the economic plan devised by Congress was functioning exactly as it was intended to.
Biden was quoted as saying:
I’m happy to report that our economy has created over 300,000, new jobs last month. It’s no accident. It means our economic plan is working.
While speaking about the upcoming CPI data next week, Biden remained hopeful and pointed out that he was almost certain it would come out in “solid shape”. The jobs report has helped to dispel rising rumors that the Federal Reserve would raise interest rates by 50 basis points in response to the recent testimony of the Fed chair at a U.S. Senate hearing — and instead provided signs that recession was far from happening any time soon.
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What It Means For Bitcoin Price
This might be a significant source of relief for risk assets such as Bitcoin (BTC) and other cryptocurrencies. This is because the larger crypto market may witness a boost in momentum if the Fed maintains its previous rate hike of 25 basis points. However, any unexpected action taken by the Fed could cause even more suffering in the market, which is already in a downward trend.
In light of the upcoming discussion over raising the federal debt ceiling, Biden again juxtaposed his economic strategy with that of Republicans on Friday. He claimed that their “reckless language” presented the largest threat to the US economy’s recovery.
As things stand, Bitcoin’s price is currently exchanging hands at $19,921 which represents a drop of 7.5% in the past 24 hours.
Also Read: Bitcoin Price Drops As Biden’s U.S. Budget Reveals Major Setback For Crypto