Powell Comments Ease Rate-Hike Concerns, but Surging Oil Hits Crypto and U.S. Stocks

Federal Reserve Chair Jerome Powell said monetary policy would look past the short-term impact of higher oil prices for now and keep interest rates steady, easing investor concerns about another rate increase. The signal helped relieve pressure on the U.S. Treasury market, but rising energy costs could still drive inflation higher and affect risk-asset valuations and global capital flows.

Powell’s latest remarks briefly steadied the bond market, but West Texas Intermediate crude continued to climb, topping $100 a barrel for the first time since 2002. The sharp increase prompted markets to reassess inflation and corporate costs. Cryptocurrencies and U.S. stocks subsequently gave up their early gains as investor sentiment turned more cautious.