Federal Reserve Chairman Jerome Powell has announced the potential rise in inflation for goods prices due to tariffs imposed by the Trump administration, which may significantly impact the economy and consumer prices by mid-2025.
Warning on Inflation Risks
During the June 18, 2025 press conference, Jerome Powell highlighted that the tariffs might create inflationary pressure on goods prices through their impact on supply chains. "It takes some time for tariffs to work their way through the chain of distribution to the end consumers," Powell noted, emphasizing the need to monitor inflation rates.
Federal Reserve's Assessment
The Federal Reserve expects that inflation will exceed its 2% target by the end of 2025, revising the forecast from 2.7% to 3.0%. The Federal Open Market Committee (FOMC) decided to maintain interest rates to gather more data on inflation's impact on consumer sentiment and business activity.
Impact on Crypto Market
Currently, the crypto markets have shown no significant response to inflation forecasts. However, historical data suggests that such macroeconomic signals may eventually influence digital assets. The situation is being monitored closely, and investors are displaying caution amid uncertainty.
The projected influence of tariffs on inflation underscores the need for adaptive economic policy. Although the impact on the crypto market is currently minimal, continued observation of the economic situation and its consequences for the markets remains critically important.
