Howard Lutnick calls for Fed to cut interest rates to promote cryptocurrency growth

Fed Chairman Powell: Inflation stable despite rising import tariffs, calls for interest rate cuts

On June 25, U.S. Secretary of Commerce Howard Lutnick posted important information from the hearing of U.S. Federal Reserve Chairman Jerome Powell at Congress on platform X. Mr. Powell affirmed that although new import tariffs could put upward pressure on inflation, there has been no significant price increase related to it over the past 2.5 months.

Inflation situation and the impact of import tariffs

The Fed Chairman emphasized that overall inflation is currently showing positive signs, indicating that price control capabilities have not been weakened by tariff measures. This move raises expectations for stability in the U.S. monetary cycle, an important signal for cryptocurrency investors and the global financial market.

Revenue from import tariffs helps reduce the budget deficit

Secretary of Commerce Lutnick added information that the U.S. currently collects over $30 billion in import tariffs each month. This revenue helps reduce the budget deficit while also providing momentum for a more sustainable and balanced fiscal policy.

Call for interest rate cuts to promote economic growth

Mr. Lutnick particularly suggested that the Federal Reserve should quickly cut interest rates to reduce borrowing costs. A softer interest rate policy is expected to stimulate liquidity, enhance market liquidity, and promote economic development, thereby creating a favorable environment for the adoption and trading of cryptocurrencies.

Lower borrowing costs not only help businesses improve cash flow but also positively impact DeFi-related cryptocurrency projects. The cryptocurrency and digital asset market will benefit from the trend of monetary easing, helping to diversify investment portfolios along with the overall recovery of the U.S. economy.

The coordination between tariff policy, inflation control, and interest rate regulation is creating a relatively optimistic picture for the economy and global financial markets. This is an opportunity for cryptocurrency investors to take advantage of market volatility while updating macro trends that directly affect the value of digital assets.

Source: https://tintucbitcoin.com/howard-lutnick-de-xuat-fed-giam-lai-suat/

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