Markets Go Berserk: Trump’s Tariff Tantrum Meets Fed Whiplash

Wall Street’s algo-traders just got a double-shot of volatility espresso. Former President Trump’s 10% ’universal tariff’ trial balloon collided with Powell’s Fed holding rates steady—because why make decisions when you can waffle?

Cryptos pumped then dumped as traders played macroeconomic ping-pong. Bitcoin briefly kissed $65k before reality set in. ’Risk-on’ became ’risk-off’ faster than a crypto influencer deleting tweets.

The only certainty? More pain ahead. As one hedge fund manager quipped: ’The Fed’s dot plot now resembles a toddler’s connect-the-dots drawing—no clear picture, just expensive scribbles.’

$96,327 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.

You can follow our news on Telegram, Facebook, Twitter & Coinmarketcap 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.