đïž #PowellRemarks : Fed Secure on the Move While Pressing for Regulation and Caution đ
In the last meeting on June 18, 2025, the Federal Reserve kept the interest rate between 4.25% and 4.50%, but adopted a notably âhawkishâ tone, signaling concern about inflation, especially the additional pressure generated by trade tariffs đž.
đ§ Key Points from Powell's Statements
Inflation Pressure from Tariffs: Powell emphasized that recent tariffs could increase inflation, stating, âsomeone will have to pay for them.â
Caution on Interest Rate Cuts: Although the official projection still indicates two cuts in 2025, nearly half of the Fed officials already consider reducing that outlook â maintaining âhumilityâ when dealing with uncertainties.
Stagflation Risk: Signs of weaker growth, persistent inflation, and global tensions raise fears of entering a stagflation scenario.
Crypto Regulation: Powell reinforced the need for regulatory clarity for cryptocurrencies, including stablecoins, highlighting that this strengthens the market.
---
đ Market Repercussions
Traditional Markets: stocks fluctuated between slight gains and losses, with the S&P 500 virtually stable and interest rates on bonds rising.
Crypto: mixed movements â Bitcoin dipped in the session but found support near $105,000 as traders adjusted positions in light of the cautious tone.
