fed

📉 The Federal Reserve has taken an unexpected step toward embracing the crypto sector. It has officially removed the concept of “reputational risk” from its bank evaluation framework, meaning financial institutions will no longer be penalized for working with controversial industries — such as crypto — as long as the activity is legal.

Fed Gives Banks the Green Light to Work with Crypto Without Image Concerns
The term “reputational risk” has long been criticized by banks for being vague and subjective. Many claimed regulators abused it to justify interfering with legal business partnerships — especially in crypto.
Now, the Fed has reversed course. In a new statement, it announced that all references to reputational risk will be deleted from internal guidance and supervisory manuals. Inspectors will instead focus on clear financial risks like liquidity, credit exposure, and operational systems.
In effect, banks will no longer be judged based on how something might look to the public if it is lawful and profitable. This aligns the Fed with agencies like the FDIC and OCC, which already removed similar rules.

Trump Pressures Fed: Cut Rates or Face the Blame
This change comes as the central bank faces intense political pressure. President Donald Trump, now back in the White House, has ramped up public attacks on Fed Chair Jerome Powell, calling him a "total and complete idiot" on social media last week.
Behind the insults lies a clear demand: slash interest rates from 4.3% to 1–2% to ease the burden of servicing national debt. Trump warned that if Powell refuses, he’ll blame him for any economic downturn.

Internal Division at the Fed, Congress Demands Answers
Jerome Powell responded:
“From our perspective, it’s simple — we want a stable U.S. economy.”

On Tuesday, Powell is set to testify before Congress, where lawmakers are expected to grill him about crypto-related rule changes and the political pressure from Trump.
Meanwhile, signs of a rift are emerging within the Fed. So far, only two officials — both appointed by Trump — have expressed support for cutting rates in July. One of them, Michelle Bowman, stated on Monday that rising unemployment worries her more than inflation — a notable shift from the usual focus on price stability.

Trump Eyes Powell’s Successor, but Faces Legal Barriers
Powell’s term ends in less than a year. Trump would like to replace him sooner, but the Supreme Court recently blocked the president’s ability to remove federal commissioners at will, effectively shielding Powell — for now.
Instead, Trump is considering a different move: announcing Powell’s successor early. This would create a “shadow chair” who could begin to undermine Powell’s authority in real time. But this plan carries risks. A candidate seen as too loyal to Trump may lose credibility with markets and Fed officials.

Conclusion: Fed Caught Between Crypto Reforms and Political Fire
While the Fed’s move marks a major step toward regulatory relief for banks working with crypto, it finds itself caught between two powerful forces — institutional stability and a president unafraid to wage public battles with the central bank.

#Fed ,#TRUMP , #DigitalAssets , #USPolitics , #JeromePowell

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Notice:
,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“

As geopolitical tensions heat up in the Middle East, the U.S. Federal Reserve is preparing to hike interest rates once more. Driving this decision is a sharp rise in oil prices, which could reignite inflationary pressure and disrupt economic stability.

🔹 Oil Prices Soar Amid Hormuz Crisis

The situation escalated after the U.S. launched airstrikes on three Iranian nuclear sites in retaliation for Iran’s earlier response to Israeli attacks. In a bold move, Tehran shut down the Strait of Hormuz—the world’s most critical oil trade route.
This act could have massive repercussions: JP Morgan warns that if the closure persists, oil prices could spike to $130 per barrel, pushing U.S. inflation back up to 5%. That would force the Fed to act decisively, just as it did in 2023 when it raised rates twice amid similar inflation.

🔹 Oil Shock Means Higher Borrowing Costs

Research by the Fed itself shows that persistent oil price increases weaken consumer spending, reduce investments, and depress the dollar. For oil-importing countries like the U.S., rising oil costs drain national wealth and hurt economic output.
In this environment, cutting interest rates would only add fuel to the fire. Analysts say that rate hikes are more likely, especially if oil prices keep rising.

🔹 Strait of Hormuz: The World’s Oil Lifeline

The 34-kilometer-wide strait handles 20% of global oil exports and more liquefied natural gas than the Panama and Suez Canals combined. It's the artery of the global energy market, and the U.S. Navy has maintained a presence there for decades due to its strategic importance.
If Iran follows through with a total closure, a military response from Washington, Tel Aviv, or both is almost inevitable.
U.S. Senator Marco Rubio called on China to de-escalate the situation, urging Beijing to pressure Tehran. China is Iran’s biggest oil customer and maintains strong diplomatic ties, while also publicly condemning Israeli airstrikes.

🔹 Trump Demands Cuts, Powell Stays Silent

Meanwhile, Donald Trump continues pushing for lower interest rates, just as he did during his re-election campaign in 2024. He has relentlessly attacked Fed Chair Jerome Powell, both at press conferences and online.
Powell, however, remains silent, avoiding political drama while focusing on economic risks. But with inflation poised to return, his position seems increasingly validated.

🔹 Fed Between Politics and Inflation

The Fed is now caught between Trump’s political pressure and the economic reality of rising energy costs. If oil does jump to $130, swift action will be needed.
“The bigger the oil shock, the harder it is to tame inflation,” experts warn. And all signs point toward further rate hikes, even if it slows economic growth in the short term.

#Fed , #JeromePowell , #Inflation , #TRUMP , #Geopolitics

Stay one step ahead – follow our profile and stay informed about everything important in the world of cryptocurrencies!
Notice:
,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“

$BTC is holding firm around $105,000, following a surge that started with a ceasefire in the Middle East and gained further momentum after a hint from the Fed about a possible July interest rate cut.

🔥 Key Takeaways

Buy-the-dip zone: Analysts identify $103K as the new level to accumulate $BTC .Institutional inflows continue: Despite geopolitical uncertainty, spot $BTC ETFs are still seeing steady buying.Fed optimism: Fed Vice Chair Michelle Bowman stated she’d support a rate cut in July if inflation data keeps improving.

What’s your move?

Do you plan to stack BTC near $103K or will you wait for confirmation above $107K?

#Bitcoin #BTC #CryptoTrading #Fed #BinanceSquare