What to know:
- U.S. Federal Reserve Chairman Jerome Powell promised to maintain his focus on inflation as the president’s tariff policies unsettled the markets.
- He stated that the central bank is in a position to hold off on making policy adjustments for the time being.
- U.S. stock markets have seen declines for two consecutive days, while Bitcoin is beginning to show some signs of independence from the overall market trends.
Overview
Investors hoping for an immediate shift in the Fed’s strategy following the President’s recent tariff announcement and the two-day decline in stock prices will need to be patient. Jerome Powell remarked, “We are well positioned to wait for greater clarity before considering any adjustments to our policy stance. It is too soon to say what the appropriate path for monetary policy will be.”
Powell acknowledged that the tariffs are significantly larger than anticipated, emphasizing the Fed’s role in ensuring that what is expected to be a temporary spike in inflation does not evolve into a lasting situation.
Ahead of Powell’s speech, Bitcoin (BTC) experienced a slight drop, retreating to below $83,000. This price point shows little fluctuation compared to the previous day; meanwhile, the Nasdaq index has dropped by 4.2% following a 6% decrease the day before.
President Trump’s Remarks
Just moments before Powell’s address, the President voiced his opinions regarding Fed policy.
“This would be the perfect time for Fed Chairman Jerome Powell to cut interest rates,” Trump stated in a post on Truth Social. “He is always ’late,’ but he could change his image swiftly … Cut interest rates, Jerome, and stop playing politics.”
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