Federal Reserve Chair Jerome Powell delivered a speech at the Fed’s Tuesday banking regulation conference, but made no mention of monetary policy developments or the possibility of interest rate cuts. Although markets were anticipating any kind of signal about the Fed’s direction in the second half of the year, Powell stuck to technical commentary on banking oversight and capital requirements.

His silence comes at a time when U.S. monetary policy is under intense scrutiny from investors, analysts, and politicians. Treasury yields remain volatile, inflation is still above the target, and political pressure is mounting—particularly from Donald Trump, who has long criticized Powell’s approach.

🔹 A Technical Address Instead of an Economic Outlook

Instead of offering hints about interest rate decisions, Powell focused on the structural setup of the U.S. banking system’s capital framework. He stressed the need for a comprehensive view of risks and coordination between regulatory elements:

“The great benefit of this conference is the opportunity to consider all parts of the capital framework together, rather than looking at them in isolation. We must ensure that all parts of the framework work effectively together,” Powell said.

Even at the conclusion of his remarks, Powell did not comment on the current economic outlook, inflation data, or any potential rate changes. As a result, markets are left in the dark on when—or if—rate cuts may come.

🔹 Crypto and Wall Street Left in the Dark

Powell’s silence on Tuesday disappointed not only traditional financial markets but also crypto investors, who had hoped for a stronger signal about a possible policy pivot. Some had even speculated that Powell might respond to the growing tensions between him and Donald Trump, who has publicly criticized his passivity.

Trump has previously suggested that he may seek Powell’s removal if the Fed continues to resist cutting interest rates. However, Tuesday’s speech contained no such acknowledgment—Powell remained silent about his future as Fed chair, further fueling speculation of behind-the-scenes conflict.

🔹 Markets Still Waiting

For now, investors must rely on statements from other Fed officials or incoming macroeconomic data that could influence the central bank’s next moves. A rate cut in 2025 is not off the table, but Powell’s Tuesday stance shows that he is remaining cautious—perhaps also due to growing political risk.

#Powell , #TRUMP , #Fed , #FederalReserve , #CryptoMarket

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