#PowellRemarks Federal Reserve Chair Jerome Powell delivered his speech yesterday (June 18, 2025) following a meeting of the Open Market Committee, emphasizing adherence to a 'wait-and-see' approach to maintain the central bank's independence in the face of political pressures, while committing to achieving the goals of 'maximum employment' and price stability for the benefit of American households and businesses.
In this context, the following key messages emerged:
Stability of interest rates and waiting for data
Powell stressed that there is no specific timeline for lowering interest rates, considering that moving forward depends on the path of inflation and the labor market. This stance increased the risks of uncertainty for investors and forced them to monitor every new economic reading for signs of imminent change.
Focus on data quality
He warned of any decline in the ability of statistical institutions to collect and publish data accurately, explaining that the weakness of this system could lead to incorrect decisions regarding monetary policy. He stated that economic data is a 'public good' essential for the Federal Reserve's work.
Concerns about tariff inflation
He indicated that raising tariffs leads to transferring cost pressures to consumers, and may create a temporary peak in inflation, emphasizing the need to stabilize long-term expectations at 2%.
Divergent expectations within the committee
He clarified that committee members agreed on the likelihood of two rate cuts during the next year, but the gap between those who foresee a complete delay and those who support a faster move reflects concerns over a 'stagflation' scenario.
The impact on digital markets and stocks
Despite the speech's focus on traditional indicators, its impact quickly loomed over the cryptocurrency sector and related stocks (Crypto Stocks):
Bitcoin experienced a slight decline, as traders appeared concerned about the impact of ongoing uncertainty on borrowing costs and the regulatory environment.
Coinbase's stock fell by 4-5% after the speech, as several investors preferred to wait to see the fate of interest rate policy rather than engage in high-risk assets.
- What every trader should do: Monitor inflation data and the labor market:
Rely on updates from the Consumer Price Index and monthly job reports to anticipate the next steps of the central bank.
Maintain safety margins:
Use stop-loss orders to avoid excessive exposure in the event of sudden decisions.
Diversify your portfolio:
Distribute your investments between traditional and digital assets to mitigate the impact of Federal Reserve decisions on your portfolio balance.
Stay informed about regulations:
Monitor new legislative developments regarding stablecoins and securities markets, as they may interact directly with interest rate policy.