Trump’s Economic Blueprint Drops as Markets Hold Breath for Fed’s Next Move

Markets are on a knife's edge, caught between a political promise and a central bank's pivot.

Policy vs. Powell

A new economic vision just hit the tape, promising tax cuts, deregulation, and a full-throated defense of American industry. It's a direct challenge to the current financial orthodoxy—and it lands just as every trader's eye is glued to the Federal Reserve.

The real question isn't about the plan's details, but its timing. It forces a stark choice: bet on political will reshaping the economy, or trust in the slow, deliberate machinery of monetary policy. One promises rapid transformation; the other offers calibrated, data-dependent adjustments. Wall Street hates uncertainty more than it hates losing money, and right now, it's drowning in it.

While pundits parse the political theater, the smart money is watching the bond market's every twitch for a clue. After all, in modern finance, the only thing more powerful than a presidential pen is a central bank's balance sheet—just ask any banker whose bonus depends on it.

Today, TRUMP is set to deliver optimistic economic updates from Pennsylvania, coinciding with Bitcoin$90,610 trading at $90,000 and the JOLTS report among the day’s leading developments. As the U.S. market opening nears, cryptocurrencies appear largely stagnant. So, what’s the current status of the financial markets, and what challenges lie ahead for cryptocurrencies?

Current Market Landscape

Treasury bond yields are hovering near their two-month highs, and the markets remain subdued as investors cautiously wait for the Federal Reserve’s interest rate decision. After four consecutive days of gains, S&P 500 futures are steady, yet Bitcoin isn’t participating in this rally. If Bitcoin continues to drop, it may encounter new lows.

The fluctuations in bond markets are attributed to reduced expectations of the Fed easing its policies significantly in 2026. While aggressive rate cuts were previously foreseen for the coming year, projections have been scaled back to just two rate reductions.

In related news, despite Trump’s remarks indicating that Nvidia chips will be sold to China, reports about limited access to China’s H200 chip have adversely impacted Nvidia’s stock. Historically, bitcoin tends to fall alongside Nvidia, so traders will be closely observing whether the sell-off in the chip giant’s shares will accelerate at the market opening.

Anticipation of the JOLTS Report

The critical report to note before tomorrow’s Fed rate decision is JOLTS, which we hope will confirm a cooling in employment. However, numbers exceeding expectations could negatively impact cryptocurrencies. The report will be released at 18:00, and readers can catch the latest updates on COINTURK.

While the Fed has delayed its monetary easing, other central banks indicate that their easing cycles might be concluding. For instance, Australia’s Michele Bullock indicated the end of the cycle, and ECB’s Isabel Schnabel suggested that the next step might be a rate increase rather than a cut. Moreover, Japan is preparing for a rate hike next week. The Fed, meanwhile, is finalizing its decision on rate reductions, treating each cut as potentially the last, an unfavorable scenario for markets.

With Powell’s term concluding in May, he might hand over an environment conducive to tight monetary policy as global central banks shift towards such measures. This scenario poses significant challenges for cryptocurrencies.