The macroeconomic landscape for cryptocurrencies remains heated with significant developments. Trump continues to insist on additional tariffs and plans to expand them. Furthermore, investors are anxious about upcoming inflation data and how tariffs might impact prices in the coming months. Amidst all this, Powell is making critical announcements.
Key Insights from Powell
During his testimony in Congress, Powell shared crucial insights regarding interest rate cuts and other matters. Bitcoin 
$74,691‘s price dropped below $97,000, hitting a daily low of $96,595 amidst his comments. Key takeaways from his statements include:
- The Fed will complete its budget framework review by the end of summer.
- The inflation target of 2% will not be the primary focus of the review.
- The policy is well-positioned to handle risks and uncertainties.
- If the economy remains strong and inflation does not head towards 2%, restrictive policy may persist longer.
- If the labor market unexpectedly weakens or inflation drops faster than expected, policy could be eased.
- The overall U.S. economy is robust, closer to the 2% inflation target but still moderately high.
- There is no urgency to adjust the policy.
- The unemployment rate is low and stable, with a solid labor market not being a source of inflationary pressures.
Predictions for interest rate reductions are being postponed until July.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research.
