According to CoinDesk, investors anticipating a significant shift in the Federal Reserve's policy following U.S. President Donald Trump's recent tariff announcement and the subsequent decline in stock prices will need to exercise patience. Fed Chair Jerome Powell, speaking at the Society for Advancing Business Editing and Writing Annual Conference, emphasized the importance of waiting for more clarity before making any policy adjustments. Powell stated, "It is too soon to say what will be the appropriate path for monetary policy," highlighting the need for careful consideration in response to the unexpected tariff measures.
Powell acknowledged that the tariffs imposed are "significantly larger" than anticipated, underscoring the Fed's responsibility to prevent a temporary rise in inflation from becoming a persistent issue. Despite a brief rally in anticipation of Powell's speech, bitcoin (BTC) has settled back below $83,000, remaining relatively stable over the past 24 hours. In contrast, the stock market continues to struggle, with the Nasdaq experiencing a 4.2% decline following a 6% drop the previous day.
Just before Powell's address, President Trump expressed his views on the matter, urging the Fed Chair to take immediate action. In a Truth Social post, Trump stated, "This would be the perfect time for Fed Chairman Jerome Powell to cut interest rates." He criticized Powell for being "late" in his decisions but suggested that a swift rate cut could alter his image. Trump's comments reflect his desire for the Fed to act decisively and avoid political maneuvering, adding pressure on Powell as he navigates the complex economic landscape.
