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As the article was being prepared, U.S. Federal Reserve Chairman Powell was making statements. Bitcoin 
$103,575 was priced at 85,000 dollars, while Bitcoin dominance was reaching new heights, and altcoins continued to incur losses. Although tariffs were larger than anticipated and Trump’s fluctuating stance added complexity to the situation, the Fed appeared to maintain a confident demeanor.
Latest Statements from the Fed
Powell continues to disregard Trump’s repeated calls to lower interest rates. In the statements made by the Fed Chairman and other members, there is an evident focus on inflation concerns, while simultaneously acknowledging the uncertainties and risks surrounding tariffs. Powell suggests that it may be wiser to observe the unfolding situation, which undermines the expectations for interest rate cuts.
Key takeaways from the ongoing statements are as follows:
“We are in a good position to wait for more clarity before considering any changes to our policy stance. Despite rising uncertainties and downside risks, the U.S. economy remains robust. The strong imports in the first quarter will put pressure on GDP growth, which is likely to slow compared to last year’s robust pace in the first quarter of 2025. We are either at or close to maximum employment, with inflation slightly above the 2% target, having significantly decreased.”
Short-term interest rate futures in the U.S. showed little change following Chairman Powell’s prepared remarks.
On monetary policy, he stated:
“As we understand policy changes better, we will better comprehend their effects on the economy and thus on monetary policy. Tariffs are likely to bring at least a temporary increase in inflation. The inflationary effects may also be more permanent. Avoiding this outcome depends on the scale of these effects and how long it takes for prices to fully reflect them.”
Given the ongoing developments, Powell emphasizes that it is crucial to maintain long-term inflation expectations. The inflationary impact of tariffs may become more permanent, contingent upon inflation expectations. He expresses the Fed’s commitment to achieving long-term price stability and ensuring that any one-time increase in price levels does not convert into an ongoing inflation problem.
