coindesk.com
Inflationary pressures are running higher than expected, said Federal Reserve Chairman Jerome Powell in prepared remarks to the U.S. Senate as he presents the central bank's Semiannual Monetary Policy Report.
"The data from January on employment, consumer spending, manufacturing production, and inflation have partly reversed the softening [inflation] trends," said Powell.
While allowing that unseasonably warm weather in January might be responsible for the stronger than hoped inflation figures, Powell said the "process" of returning inflation to the Fed's 2% target "has a long way to go and is likely to be bumpy."
Bitcoin (BTC) fell about $350 in the immediate aftermath of the Powell's prepared remarks, breaking below $22,000. It's bounced a bit since, now trading at $22,100. The S&P 500 dipped as well, now down 0.75% in Tuesday morning action.