The sales pressure caused by tariffs announced by US President Donald Trump remains effective in both global and cryptocurrency markets.
At this point, the Fed is expected to cut interest rates for recovery in the face of ongoing negative winds, but all eyes are based on a statement that is currently Fed Chairman Jerome Powell should make today.
Powell will speak at 18:25 GMT.
What do you expect?
After the Fed kept interest rates at 4.25%-4.5% in March, citing current economic uncertainty, Powell is expected to make an important statement on the economic outlook and present the next rate decision in his speech.
After Trump announced tariffs on 185 countries, including China, the US raised concerns that inflationary pressures would continue within the country. Analysts believe the Fed will do a tough job amid the inflationary recession dilemma.
At this point, analysts say Powell’s speech is growing in importance and they hope Powell will give it to influence both global and cryptocurrency market directions.
The market expects the Fed to make four interest rate cuts in 2025, but the interest rate cuts in June are priced at 83%.
Citi analysts said they expect the Fed to look favorable by further easing, even if higher tariffs that continue for at least months will significantly increase inflation.
“Ultimately, the authorities are hoping that this year, despite current tariffs, the authorities will increase by 125 basis points this year,” City analysts said.
What do Fed officials think?
According to a statement by Fed officials, Federal Reserve Vice Chairman Philip Jefferson said the Fed will act according to inflation progress and the labor market. Therefore, the Fed may continue to continue its current strict policies for a long period of time or loosen its policies. Jefferson added that he expects moderate softening in the labor market this year.
Federal Reserve member Lisa Cook said uncertainty about tariffs between the US and other countries could weaken the economy. Cook said lower US economic uncertainty and ease of inflation will make interest rate cuts easier.
*This is not investment advice.
