Fed Chair Powell's Inflation Concerns and Their Impact on Stock Markets

Fed Chair Powell gives investors reasons to cash in profits

European stocks lost some ground on Friday to end what has otherwise been a positive week for stocks after Fed Chair Powell stated that policymakers were not confident interest rates are high enough to cool inflation. If investors were looking for a reason to lock in some profits after a week and half of strong stock gains across European and US stock markets, Powell handed it to them on a silver plate. I don't believe what Powell said was a shock but I do feel the general consensus amongst investors is that interest rates are at or close to their peaks and their focus is turning to the timing of rate cuts. The fact the Fed has sent a clear signal that the conversation for rate cuts is far too premature, this has given some investors a bit of a reality check today with the FTSE losing more than 1% with European indices such as the DAX following a similar pattern.

Crypto recovery continues as Ethereum price takes flight

We're seeing a continuation of the positive price sentiment seen in Cryptocurrencies over the past week. After news broke that Blackrock had registered its iShares Ethereum Trust corporate entity in Delaware and then proceeded to file a 19b-4 form with Nasdaq for its much speculated Ethereum ETF, this has gotten ETH buyers very excited today. The result in the markets has been clear, with Ethereum enjoying strong buying momentum helping to lift prices by more than 9% on the day to trade at its highest levels for 19 months above $2000. With Bitcoin also trading around $37,000 - despite some minor falls in the past few hours - the famous 'crypto buzz' certainly feels to be returning.

Walid Koudmani

Market Analyst working in UK-Italian-Arabic markets covering a broad range of assets including stocks, commodities, FX and crypto. English, Italian and Arabic Speaker with a B.A in Business Management. Quoted in many prestigious publications including the Guardian, Barrons and Lefigaro and winner of bloomberg top forecast rank Q-2/Q-3 2020.