🔥Breaking! The Federal Reserve ignores Trump's pressure and steadfastly maintains interest rates. Can the cryptocurrency market withstand the inflation storm?
As the 'Trump-style tariff frenzy' continues to escalate, the Federal Reserve once again remains motionless! On May 7, the Federal Reserve decided to keep interest rates unchanged at 4.25%-4.5%, directly ignoring Trump's calls for 'rate cuts.' This is the third time in 2025 that rates have been stabilized, and the reasons behind it are thought-provoking.
Tariff risks trigger inflation alarms, the Federal Reserve chooses to watch calmly
Despite a slight decline in the March CPI and an annual inflation rate of only 2.4%, the Federal Reserve remains highly vigilant. The reason is clear—Trump's tariff hammer, which he launched in April, is threatening global trade balance, causing companies to rush imports and raising price expectations. The future trend of inflation is full of uncertainties, and policymakers prefer to wait and see rather than easing prematurely.
Market reaction: Bitcoin surges briefly, hidden worries in the cryptocurrency market
Bitcoin surged to $97,000, with funds continuing to flow into digital assets. However, at the same time, the market is also concerned about the spillover of tariff costs, weakening the logic of safe-haven assets, and even triggering 'stagflation'—a nightmare scenario of economic slowdown combined with persistently high inflation.
Trump's call for rate cuts is ignored; the Federal Reserve maintains its independence
Trump continuously calls out that 'there's no inflation, so we should cut rates,' but the Federal Reserve chairman clearly stated: monetary policy does not serve politics. This meeting once again proves that the Federal Reserve prioritizes inflation and employment, not the election rhythm of the White House.
Wait for rate cuts? The market locks in July as a key turning point
Although the current policy remains stable, the market predicts that a rate-cutting cycle may begin in July, with 2-3 rate cuts expected before the end of the year. The premise is that inflation is controllable and tariff impacts are limited.
Summary: Risks hidden within stability; the cryptocurrency market must closely watch for 'policy landmines'
The cryptocurrency market appears to be heating up, but in reality, there are undercurrents. The Federal Reserve is withstanding pressure to stabilize rates, providing short-term benefits to the market, but in the medium to long term, it still needs to guard against 'black swan' events caused by policy and inflation variables.
📌 The next big event will be in July. Will the Federal Reserve pull the 'rate cut trigger'? This will become a key catalyst for the next wave of cryptocurrency market movements.