Stocks and crypto assets fell in all directions in response to the new policy announcement of the Federal Reserve meeting.

In a new speech at the annual meeting of the Federal Reserve, the current chairman Jerome Powell stated that the key purpose of the Federal Reserve meeting is to reduce the inflation rate to 2%, so it is not prepared to reduce the interest rate in a short time.

"It may also be necessary to maintain the binding current policy viewpoint for a period of time to restore the stable price. Historical data clearly warn that it is not necessary to release the pressure on the current policy too early."

Powell recognized that foreigners may suffer from living difficulties, but he pointed out that the experience accumulated by the Federal Reserve meeting in solving inflation in the 1970s and 1980s specifically guides the current policy at this stage.

"Although higher interest rates, slower growth and weaker human resources market standards will reduce inflation, they will all bring some pain to families and enterprises.

These are the unfortunate costs of reducing inflation. If it can not be repaired and the price is stable, it will represent more pain. "

The current chairman explained that the public's sentiment on the prospect of further inflation in the future was the main reason why the Federal Reserve meeting felt that it had the responsibility not to reduce the current interest rate, which is between 2.25% and 2.50%.

"The longer the current round of high inflation continues, the more likely the expectation of higher inflation will be unshakable.

(therefore) we must persist until the task is carried out. Historical time shows that with high inflation becoming more unshakable in the formulation of wages and prices, the cost of work to reduce inflation may change over time. "

The news of Powell's speech caused the prices of many asset classes to plummet, and individual stocks, precious metals and digital currencies all suffered losses.

BTC fell by 3.53% to US $20632, while Ethereum fell by 6.17% to US $1572.

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