Fed stays tuned with interest rates, Trump's tariffs shake the market

Despite the strong sell-off in the market following the president’s tax announcement, the Federal Reserve is not in a hurry to change its course. Federal Reserve Chairman Jerome Powell, speaking at the annual conference of the Association of Business Editors and Writers, emphasized that the Fed is not yet ready to change interest rates. He noted that they are waiting for greater clarity before considering any adjustments to their policy stance and that it is still too early to determine the right course of action for monetary policy. Tariffs cause more inflation. The Federal Reserve notes that the economic impact of higher tariffs remains difficult to predict due to ongoing uncertainties. Higher tariffs could lead to greater-than-expected inflation and slower growth. While the full impact is still uncertain, it is important to keep long-term inflation expectations stable. Their goal is to ensure that any one-time price increase does not develop into persistent inflation. Trump’s tariffs have had a stronger than expected impact, causing a global stock sell-off. JPMorgan now sees a 60% chance of a global recession if tariffs continue. Bitcoin (BTC) has dropped below $83,000, remaining unchanged over the past 24 hours, despite hopes for a more dovish stance from Powell. However, it is performing better than stocks, with the Nasdaq down 4.2% after a 6% drop yesterday. Trump urges Powell to cut interest rates Just before Powell’s speech, Trump criticized him on Truth Social, saying that this is the perfect time for Powell to lower interest rates. He noted that although he often acts slowly, he can change that right now. “Cut the interest rates Jerome, and stop playing political games,” he said. Meanwhile, Bloomberg analyst James Seyffart was surprised by the strength of Bitcoin, noting that it remains above $80,000 despite the sell-off of risk assets and the decline of gold. Blockstream founder Adam Back added that he has always believed that Bitcoin’s connection to traditional markets is artificial. While Bitcoin’s past correlation with traditional markets may have been artificially driven, it is now functioning on its own.

XRP skyrockets, the momentum of Bitcoin is very important In addition, XRP also surged 12% in just two days, reaching $2.12, driven by new buying pressure and China’s new tariffs on the United States, further increasing market volatility. This price increase aligns with bullish signals such as the MACD crossover and the rebound from $1.98, with the resistance level of $2.28 in sight. If Bitcoin’s upward momentum remains strong, XRP could rise to $2.58. Bitcoin is currently trading at $83,810, up over 0.7% in the past day.