Federal Reserve Chief Jerome Powell stated that no interest rate reductions are expected in the near future, indicating a cautious stance by the Fed amid political pressure and economic challenges.
Fed's Position and Powell's Testimony
In his testimony before Congress, Powell emphasized that the Fed is waiting for additional data before making any decisions on interest rate changes. He noted that Trump tariffs could lead to increased consumer prices, but the Fed's decisions will continue to be data-driven.
Political Pressure and Leaders' Opinions
Some political leaders, including former President Donald Trump, expressed disappointment with Powell's stance, believing the current policy is hindering growth in sectors such as housing.
Crypto Market and Bitcoin Remains Steady
Despite the hawkish rhetoric, the crypto market remains robust. Bitcoin continues to trade above $105,000, suggesting that the market has already factored in a potential dovish Fed. Investors are holding on to capital and closely monitoring upcoming Fed announcements for signs of potential easing.
With Powell's upcoming speech, markets are closely watching for his tone. Any indication of economic easing could fuel a new crypto rally. Meanwhile, Bitcoin's steady position above $105K shows its resilience against macroeconomic uncertainty.
