Trump’s team continues discussions with countries regarding tariffs, with a significant event expected on April 2. The introduction of customs tariffs will steer the U.S. economy down a different path, especially as concerns over economic recession and inflation put pressure on the Fed. Ali Charts has shared predictions for the day ahead.
Fed’s Interest Rate Decision and Expectations
The Federal Open Market Committee (FOMC) is likely to keep interest rates steady, a decision already priced into the markets. While this decision seems almost certain, investors are focusing on the messages from Powell. Another point of interest will be the newly released data reflecting economic expectations, as media forecasts regarding interest rates will be crucial.
“The market’s expectations for interest rate cuts in the later months of 2025 remain unchanged, but the timing remains uncertain. The February Consumer Price Index (CPI) report showed inflation dropping from 3.1% to 2.8%, moving closer to the Fed’s 2% target. However, the latest consumer survey from the University of Michigan indicated a five-year inflation expectation of 3.9%, the highest in 30 years, keeping long-term inflation expectations elevated.”
This persistent inflation concern has made the Fed hesitant to proceed with aggressive interest rate cuts soon. In December, the Fed projected two rate cuts for 2025, and Powell’s comments today will determine whether this timeline remains unchanged or shifts.” – Ali Charts
Potential Scenarios Ahead
Ali Charts suggested that if inflation worries prevail and Powell implies that rates will be kept high for longer, a drop in cryptocurrencies could accelerate. Conversely, if Powell signals that the Fed is inclined to ease later this year, markets may respond positively, triggering a relief rally in Bitcoin 
$77,287 and stocks.
This indicates that we are clearly at another crossroads. With no meeting in April, the messages delivered today regarding interest rate forecasts and all details will dictate the direction of cryptocurrencies for the upcoming months.
“While an unexpected interest rate cut today is highly unlikely, it would be a significant shock. If it occurs, investors will likely interpret it as the start of a new monetary expansion cycle, potentially triggering a strong risk rally in financial markets. Historically, Bitcoin has performed well in such environments, rising during previous periods of Fed interest rate cuts and increased liquidity. Although no rate cut is expected in this meeting, clear guidance on future policy changes, such as ending Quantitative Tightening (QT), could significantly influence the markets. If Powell implies that the Fed is considering slowing or halting QT, it would signal a more accommodating stance supporting liquidity-sensitive assets like Bitcoin.” – Ali Charts
Finally, a genuine upward break will emerge with closures above $86,000. A drop below $80,000, especially the loss of $77,500, could lead to devastating results and rapid panic selling.
