#MetaplanetBTCPurchase Jerome Powell’s recent remarks reflect a cautious stance on the Federal Reserve’s role and the evolving economic landscape, particularly in light of President-elect Donald Trump’s policy shifts. Let’s break down the key points and their potential implications for market sentiment:

1. Fed as Not a “Savior”:

- Powell’s statement that markets should not expect the Fed to act as a “savior” signals a deliberate effort to temper expectations of aggressive monetary interventions, such as rapid rate cuts or large-scale asset purchases, to counteract market volatility. This aligns with his earlier 2024 comments emphasizing that the Fed will wait for clearer economic signals before adjusting policy significantly.

- Impact on Sentiment: This could dampen optimism in equity and risk-asset markets, which have recently rallied on expectations of looser monetary policy under a Trump administration. Investors hoping for a dovish pivot may feel disappointed, potentially leading to short-term selling pressure in stocks and cryptocurrencies. The S&P 500 and Nasdaq, for instance, have shown sensitivity to Fed hawkishness, as seen in a 0.75% Nasdaq decline following similar remarks in November 2024.

2. Uncertainty from Trump’s Policies:

- Powell acknowledged that Trump’s proposed tariffs, immigration policies, and fiscal changes could increase inflation while restraining growth, creating a stagflationary risk. This uncertainty complicates the Fed’s ability to forecast and manage monetary policy effectively.

- Impact on Sentiment: The mention of stagflation risks could heighten volatility across asset classes. Bond yields may rise as investors price in higher inflation, while growth-sensitive sectors like technology could face headwinds. Bitcoin and other cryptocurrencies, often viewed as inflation hedges, might see mixed effects: short-term pressure from risk-off sentiment but longer-term support if inflation fears intensify.

3. Cryptocurrencies Going Mainstream and Stablecoin Regulation:

- g above $84,000 as of April 17,