๐บ๐ธ WHAT DID POWELL REALLY SAY?
Federal Reserve Chair Jerome Powell has openly blamed Trump-era tariffs as a key driver behind recent inflation spikes โ not just loose monetary policy.
โ ๏ธ This is BIG.
For years, inflation was framed as a โrate problem.โ
Now? Trade policy is back in the spotlight.
---
๐ THE FEDโS POSITION (READ CAREFULLY ๐)
While inflation continues to overshoot the Fedโs 2% target, Powell emphasized:
๐น Tariffs are pushing prices higher across supply chains
๐น The impact is temporary โ but VERY real
๐น Inflation isnโt solely the Fedโs fault
๐น Rate cuts are happening, but cautiously
๐ก December Move:
๐ Fed cut rates to 3.5%โ3.75%
Butโฆ
๐จ DISSENT REMAINS
Several Fed officials voted against further easing, warning that inflation pressure hasnโt fully cooled yet.
---
โ๏ธ WHY THIS MATTERS
Tariffs = higher import costs
Higher costs = higher consumer prices
Higher prices = sticky inflation
Even if demand cools, policy-driven inflation doesnโt disappear overnight.
Thatโs why the Fed is walking a tightrope ๐งตโ๏ธ
---
๐ MARKET REACTION: RISK-OFF MODE
Crypto didnโt like the uncertainty.
๐ป $BNB โ DOWN
๐ป $AVAX โ DOWN
๐ป $MATIC โ DOWN
Why?
Because markets hate one thing more than bad newsโฆ
๐ UNCERTAINTY
Will inflation fade naturally?
Will rates pause?
Or will the Fed be forced to stay restrictive longer? ๐ฌ
๐ WHAT MARKETS ARE WATCHING NOW
๐ Upcoming CPI & PCE data
๐ Any rollback or expansion of tariffs
๐ Fed language โ โtemporaryโ vs โpersistentโ
๐ Timing of the next rate cut
One hot inflation print could flip the entire narrative overnight. โก
๐ง BIG PICTURE TAKEAWAY
๐ฅ Inflation is no longer just a money-printing story
๐ฅ Trade policy is back as a macro weapon
๐ฅ The Fed is divided
๐ฅ Markets are nervous
This is the kind of environment where: ๐ Smart money positions early
๐จ Weak hands panic
๐ Volatility creates opportunity
