๐จ๐จ๐จ๐จ๐จ๐จ๐จ๐จ๐จ๐จ๐จ๐จ๐จ๐จ๐จ๐จ
Here are the key takeaways from Fed Chair Jerome Powellโs remarks at the June 18 FOMC meetingโand why they matter for crypto over the next 14 days:
๐ฆ Rate Policy and Inflation Outlook
Rates held steady at 4.25โฏโโฏ4.50%, marking the fourth consecutive pause .
Inflation projections revised higher (~3.0โ3.1% for 2025) while GDP growth forecasts were downgraded (~1.4%) .
Dot plot shows fewer rate cuts this year, with potential easing pushed to September or later
Crypto takeaway: Higher-for-longer rates, dwindling rate-cut expectations, and stronger dollar all reduce liquidityโtypically bearish for risk assets like bitcoin and altcoins.
๐ฌ The Tone: Hawkish with Limited Dovish Hints
Powell emphasized inflation risks from tariffs and said โsomeone has to pay,โ signaling caution rather than support .
He reinforced the Fed's data-driven, independent stance, refusing to be politically pressured .
Only one or two cuts projected in 2025, a notable reduction from prior dot plot indicating three or four .
However, Powell hinted at a possible slowdown in quantitative tighteningโslight liquidity easing .
๐ Crypto Market Implications in the Next 2 Weeks
Liquidity stays tight
โ Expect range-bound or downward pressure, especially for alts (beincrypto.com).
Volatility around economic data
โ Jobs or inflation updates could trigger sharp moves; Powell flagged tariffs as an inflation wildcard (kiplinger.com, businessinsider.com).
Sentiment weakens on hawkish tone
โ If investors hoped for quick cuts, disappointment may drive risk-off flows from crypto into bonds or dollar-based assets.
Short-term bounce possible
โ Some market participants might interpret the gradual QT slowdown and projection of some cuts as market-friendly; we could see minor ralliesโbut limited upside.
Focus on next Fed datapoints
โ CPI, PPI, payrolls over the next two weeks will be dissected for future easing signals.
#PowellRemarks $BTC #Write2Earn #BTCPrediction