🔻 The Driving Forces Behind Market Decline & Liquidity Outflows

The ongoing market downturn can be attributed to multiple factors, with economic uncertainty at the forefront. The U.S. Federal Reserve is facing significant challenges due to evolving trade tariffs and political uncertainties, adding complexity to its monetary policy decisions in the coming months.

Federal Reserve officials have expressed deep concerns over the unpredictability of policy direction, emphasizing that tariffs—introduced in the early Trump administration—continue to create economic instability. Chicago Fed President Austin Goolsbee has cautioned against underestimating the inflationary risks tied to tariffs, warning that failing to acknowledge their impact could be a serious misstep. Similarly, Richmond Fed President Thomas Barkin pointed out that it remains uncertain whether rising costs from tariffs will be absorbed by businesses or passed on to consumers, adding another layer of unpredictability.

Given these factors, the Federal Reserve remains in a cautious stance, carefully weighing its options. Policymakers must determine whether rate cuts will resume later this year or if maintaining the current approach is the better course of action. This indecision continues to influence market sentiment, contributing to liquidity outflows and increased volatility across financial markets.

📉 Market Snapshot:

$TRUMP /USDT: $17.274 (-8.05%)

$TRX /USDT: $0.2296 (+1.03%)

$BERA /USDT: $7.584 (-35.88%)

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