#PowellRemarks Federal Reserve Chairman Jerome Powell delivered his speech yesterday (June 18, 2025) following the Open Market Committee meeting, reiterating the commitment to a 'wait-and-see' approach to maintain the central bank's independence in the face of political pressures, while committing to achieving the goals of 'maximum employment' and price stability for the benefit of American households and businesses.
In this context, the following key messages emerged:
Stability of interest rates and waiting for data
Powell emphasized that there is no specific timeline for lowering interest rates, stating that moving forward depends on the path of inflation and the labor market. This position heightened uncertainty risks for investors and forced them to monitor every new economic reading for clues of an imminent change.
Focus on data quality
He warned against any decline in the ability of statistical institutions to accurately collect and publish data, explaining that weaknesses in this system could lead to incorrect decisions regarding monetary policy. He stated that economic data is a 'public good' essential for the functioning of the Federal Reserve.
Concern over tariff inflation
He indicated that raising tariffs causes cost pressures to be passed on to consumers, which may create a temporary peak in inflation, emphasizing the necessity of stabilizing long-term expectations at 2%.
Divergent expectations within the committee
He clarified that committee members agreed on the possibility of two rate cuts over the next year, but the gap between those who see a complete delay and those supporting a quicker move reflects concerns over a 'stagflation' scenario.
The impact on digital markets and stocks
Despite the speech's focus on traditional indicators, its impact quickly overshadowed the cryptocurrency sector and related stocks (Crypto Stocks):
Bitcoin has seen a slight decline, as traders appeared wary of the ongoing uncertainty affecting borrowing costs and the regulatory environment.
Coinbase's stock fell by 4–5% after the speech, as several investors preferred to wait and see the fate of interest rate policy rather than engage in high-risk assets.
- What every trader should do: Monitor inflation and labor market data:
Rely on updates from the Consumer Price Index and monthly job reports to anticipate the central bank's next steps.
Maintain safety margins:
Use stop-loss orders to avoid excessive exposure in the event of sudden decisions.
Portfolio diversification:
Distribute your investments between traditional and digital assets to mitigate the impact of Federal decisions on portfolio balance.
Stay updated on regulatory matters:
Keep track of new legislative developments regarding stablecoins and capital markets, as they may interact directly with interest rate policy.