This week, the independent Federal Reserve will certainly maintain interest rates. There is no doubt that the economy is softening, but it has not yet reached a point that forces policymakers to react too strongly. Especially given that price pressures (particularly personal consumption expenditures) are still persistent.

In this context, the potential impact of tariffs will certainly keep the Federal Reserve on alert. From the current situation, the markets have not priced in expectations for a rate cut this week. Trump reiterated over the weekend that he has no intention to fire Powell, but do note that he also took time over the weekend to post: no inflation, the Federal Reserve should lower interest rates!

Therefore, if the Federal Reserve does not do so this week, it will see how sharp Trump's gaze on Powell can be. It is not ruled out that Trump will again harshly criticize Powell over this decision. $BTC