The Fed left interest rates unchanged as anticipated, yet President Trump’s declaration of being currently “not open” to reducing tariffs on China sent Bitcoin 
$76,830 into a decline. With negotiations scheduled to begin on Saturday, Trump’s response to journalists’ questions on trade exemptions not only affected the stock market but also triggered a downturn in the cryptocurrency market. Meanwhile, Fed Chairman Jerome Powell has begun addressing the nation regarding future economic policies.
Key Insights from Fed Chairman Powell’s Address
Bitcoin’s value dropped to as low as $96,000 following the latest developments. Powell’s forthcoming statements hold significant weight for the June meeting. Even though the Fed maintained its interest rates, it outlined risks related to unemployment and inflation. Powell’s emphasis on employment warnings and signals of recession could potentially bolster the crypto market. Deutsche Bank Economist Luzzetti noted a significant decrease in the likelihood of a June rate cut, projecting the initial reduction to be delayed until December.
Key excerpts from Powell’s ongoing speech are available below, with the page being frequently updated until the conclusion of his address:
Powell’s speech has commenced.
Fed Chairman Powell stated that the economy remains robust.
Powell observed that inflation has decreased significantly, currently hovering slightly above the 2% target.
He noted that the current policy setting positions the Fed well for timely responses.
Powell also mentioned heightened risks associated with unemployment and inflation, indicating a dip in GDP reflects unusual trade fluctuations.
He expressed the intention to assess how future uncertainties might influence spending and investment, perceiving the job market as generally balanced.
Powell remarked that wage growth continues at a moderate pace, with both consumers and businesses reporting reduced sentiment in surveys.
The labor market aligns with maximum employment without exerting significant inflation pressure.
Powell highlighted tariffs as a driver of inflation expectations among survey participants, pointing out that most long-term measures align with the 2% target. The announced substantial tariff increases could result in higher inflation and lower employment persisting.
Ultimately, Powell stated the Fed remains prepared to wait for greater clarity before policy adjustments, as long-term tariff effects on inflation remain ambiguous.
