Whoever understands the Federal Reserve's language... wins before the market
Summary of the U.S. Federal Reserve's decision that is shaking the crypto markets now
The U.S. Federal Reserve decided to keep the interest rate unchanged between 4.25% to 4.5%
However, the precise details in Jerome Powell's statements will determine the fate of the markets next month. Here’s the investment summary you need as a smart crypto trader
Key points from Powell's statements:
1. Inflation is slowing but remains high above the Fed's 2% target, indicating no easing of monetary policy is imminent.
2. U.S. tariffs have increased inflation more than expected, and if they continue, they will put pressure on financial markets + rising unemployment.
3. Interest rate cuts may be delayed until 2026.
4. The Fed operates independently of political pressures, even if attacked by Trump.
5. The economy is stable currently, but risks are high.
Why should you care?
Interest rate decisions are the hidden "remote control" for crypto prices
◼️ Rate cut: A rocket for Bitcoin (watch its historic rise in September 2024 after a 50 basis point cut)
◼️ Rate hike: A warning of a downturn (as happened in 2022 when Bitcoin lost 10% in one day)
◼️ Holding steady + Powell’s statements: A ticking time bomb with 3 dangerous signals:
1. Stubborn inflation above 2%
2. Tariffs double the pressures
3. Possibility of delaying rate cuts until 2026.