What do you see when the Fed does not cut interest rates, despite high inflation, rising unemployment, and people complaining about prices?

👉 Most see 'nothing has changed'.

👉 But informed investors will see a turning point is approaching — extremely important for crypto.

The Fed does not cut interest rates — but Powell's tone is what is truly frightening

On May 8, the Fed meets. No interest rate cut — just as predicted.

But Powell said something very thought-provoking:

“We see the risks of inflation and unemployment rising simultaneously, but still believe current policy is flexible enough to respond.”

Sounds normal?

But if you understand how the Fed operates, you will realize:

- Inflation is still high at 2.3–2.6%, not down to the 2% target

- The labor market is starting to slow, but not enough to be a 'disaster' for the Fed to pivot

- And prices are still quietly climbing – due to new tariffs from the Trump administration

→ The Fed knows things are getting worse — but there is no 'justifiable reason based on data' to act.

“People are hurting – but the Fed calls it… perception”

A CBS reporter asked:

“People clearly see prices rising. Small businesses are starting to feel the pinch. So when will the Fed act?”

Powell replied:

“We haven't seen that in the data. That's just sentiment and expectations.”

This is the core of the issue:

The Fed does not react to emotions

They only react to data — and data always has a delay

The market immediately changed its tone: The probability of a rate cut in June dropped from 68% → 24%

Only after one night of the press conference did the market understand that:

The Fed is hesitating before a major turning point

→ High interest rates may last longer… but cannot last forever

What does this mean for Bitcoin & Crypto?

You are about to enter a phase where:

The Fed has few options left:

→ Cutting interest rates early = inflation reigniting

→ Keeping interest rates too long = rising unemployment, small businesses breaking

A stagflation environment (high inflation, slow growth) is forming

→ This is when money pulls out of traditional assets and seeks the strongest safe havens: Bitcoin and gold.

So when will new money really flow into crypto?

👉 Not when Powell speaks

👉 Especially when unemployment, inflation, or recession data clearly triggers alarms

→ At that point: The Fed will have to pivot — and BTC is often the first asset to react.

Bitcoin does not wait for Nasdaq to run. It runs ahead.

Strategies for you right now:

No FOMO, no bottom guessing.

→ DCA when prices adjust (many large institutions are starting to accumulate)

Watch the Fed's June meeting – they will announce new interest rate forecasts (SEP)

→ If there are signals of a slowdown in interest rates → that is the 'first brushstroke' of the pivot

Closely monitoring real indicators: bond yields, unemployment data, ETF cash flow into crypto

Summary

The Fed is stuck between two painful choices.

And once the pain is enough, they will have to cut.

You can't wait for them to make a clear announcement — by then, it will be too late.

You need to read the picture before the words are written on paper.

📌 Save this post – because when BTC surpasses 80k, you'll know the reason it started from.

💬 Comment your perspective: When is it reasonable for the Fed to pivot?