#PowellRemarks The cautious statements of Federal Reserve Chairman Jerome Powell are causing strong fluctuations in the financial markets in general and the cryptocurrency market in particular. Bitcoin has just recorded a slight but significant price drop, reflecting concerns that the Fed is 'falling behind' in responding to global economic fluctuations.

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Powell's 'caution' leads to market impatience

Speaking before the Chicago Economic Club, Fed Chairman Jerome Powell acknowledged that the impact of the new tariffs imposed by Trump could exceed initial expectations, while warning that the Fed may soon find itself in a 'dilemma' between two objectives: price stability and maximizing employment.

'The announced tax increase is much larger than expected, and the economic consequences may be similar,' said Powell.

Although he acknowledged the possibility of temporary inflation increases due to the tax impact, Powell maintained a 'wait and see' stance, leading the market to assess that the Fed may be reacting too slowly.

Immediately after the speech, Bitcoin dropped 1.5% to around $83,700 in less than 90 minutes. Although it later slightly recovered, BTC still decreased by about 0.5% within 24 hours. The S&P 500 index also lost as much as 2% during the day, reflecting widespread fear in the financial markets.

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Crypto investors on alert: Is the Fed 'falling behind'?

According to Juan Leon, a senior investment analyst at Bitwise, Powell's repeated statements that 'it's too early to conclude' are making investors anxious that the time will come when he has to say 'it's too late to act.'

'The market thinks that the Fed is slow to react.'