Recently, the financial circles have been more explosive than ever! The tariff struggle, the suspense of Fed rate cuts, is shaking the market madly, especially closely related to BTC and ETH that we are watching. This big game must be seen through!
Tariffs become an 'inflation bomb', the Fed's interest rate cut plan hits the brakes.
At the European Central Bank forum, Powell rarely 'passes the buck': if it weren't for the adjustment of tariff policies, the Fed would have started cutting rates earlier! The planned easing rhythm has been disrupted by the suddenly increased tariffs. He bluntly stated that seeing tariffs push up product costs and stimulate inflation expectations, rate cuts can only be postponed (translation: Trump throws the 'thunder', and I have to dismantle it?).
The Fed is in turmoil internally, is the July rate cut in jeopardy?
Inflation data for April and May has just barely receded, yet Powell insists on 'watching summer data', stating 'summer inflation may rise, and could exceed expectations moderately'. Behind this is a fierce internal struggle within the Fed: one side believes 'tariff impacts are short-term and easing should happen quickly', while the other warns 'rate cuts will fuel inflation'! More dramatically, the Treasury Secretary states 'cuts must happen before September, no later than September', whether July will see cuts is a mystery.
The White House exerts pressure, Powell responds by 'playing deaf'.
This week, the White House directly 'delivered a message' to Powell: consider cutting rates to save on interest expenses. This operation has been criticized as 'interfering with monetary policy', but Powell remains 'playing dead'—not responding, not engaging, continuing to be the 'master of wait and see'. Current core inflation is at 2.7%, awkwardly positioned, the Fed is torn: is the tariff price increase a short-term fluctuation or a new starting point for inflation?
Opportunities in the crypto world: keep a close eye on the rate cut window, wait for 'liquidity frenzy'.
Key point! For BTC and ETH, interest rate cuts = liquidity feast, a benefit ingrained in their genes. The market bets: as long as summer inflation doesn't 'run wild', the Fed might act in July (Goldman has bet on September). Remember the logic: tariff suppression of interest rate cuts → the longer the suppression, the more funds will flood in when easing occurs, and the turning point in the crypto world is likely hidden in the July - September meetings!
Ultimate conclusion.
Powell is 'walking a tightrope': bearing Trump's 'burden', balancing internal Fed disagreements, and preventing inflation rebound. But for the crypto world, as long as the US economy doesn't collapse, 'liquidity rally' is just a matter of time. Now, prepare the ammunition, wait for the Fed to release the 'brakes', and then you can harvest!
