The Federal Reserve (Fed) maintains its cautious stance regarding changing interest rates amid growing pressure from politicians and the financial community. Fed Chair Jerome Powell emphasizes the need to wait for clearer signals before changing the policy course.
State of the Economy and Fed's Position
According to Levi Rietveld of Crypto Crusaders, Jerome Powell made it clear that the Fed is 'well positioned to wait and see' regarding rate cuts. This approach is particularly significant for XRP, whose value proposition is increasingly connected to real-world utility rather than speculation.
Impact of Tariffs and Inflation
In his testimony, Powell noted the impact of tariffs on inflation and economic growth, stating that they are 'likely to push up inflation and weigh on the economy.' While inflation has eased, it remains 'somewhat elevated,' supporting the Fed's decision to keep rates unchanged.
Political Pressure on Fed Decisions
Facing pressure from figures like Donald Trump, Powell remains steadfast, asserting that political factors will not influence the Fed's decisions. This stance allows a focus on lower-risk assets like XRP that address real financial problems.
The Federal Reserve continues to adhere to a tight monetary policy, affecting financial markets and assets. The Fed's position offers opportunities for resilient digital assets like XRP amid economic uncertainty.
