Fed’s Inflation Dilemma: Rate Decisions Under Fire as Prices Soar

The Federal Reserve is walking a tightrope—hiked rates fight inflation but risk choking growth. Here's why their next move could spark market chaos.

### The Inflation Conundrum

CPI data won't quit. The Fed's 2% target looks like a mirage as consumer prices keep climbing. Powell & Co. now face their toughest policy call since Volcker.

### Market Jitters Ahead

Traders are pricing in pain. Rate cuts? Forget it. The real question is whether the Fed goes full hawk-mode—and how many portfolios get wrecked in the process.

### The Goldilocks Fantasy Dies

Soft landing? More like crash position. With unemployment creeping up and prices still raging, the Fed's 'perfect balance' scenario just got torched. (But hey—at least Wall Street bonuses survived.)

Rate Decisions and Cryptocurrencies

The Fed does not aim to reduce rates in the upcoming meeting. In previous months, while the ECB and others rapidly lowered rates, Powell chose to watch from the sidelines. In a global rate-cutting cycle, cryptocurrencies might have demonstrated enhanced performance, yet the Fed disrupted this. As it stands, amidst the uncertainty and fear induced by tariffs, the ECB might also refrain from cuts in September.

How, then, can the Fed cut rates amid rising inflation if even the ECB does not? This remains a challenging question to answer. crypto Traders Are Rushing to This App – Here’s Why You Should Too

Key Meetings and Their Implications

According to internal sources, after eight rate cuts since June 2024, stability for September is seen as the main scenario. Considering ongoing negotiations concluding on August 1 and potential developments in US tariff policies, opinions might still shift, sources emphasized.

Eylül faiz indirim beklentisi de düşüyor.

What will happen after August 1? Despite the original deadline on July 9, few seemed bothered. A delay to September WOULD not surprise, and due to uncertainty, it is likely central banks will not cut rates. This scenario adversely impacts cryptocurrencies.

At this very moment, the House Committee is launching an investigation into Fed’s renewal efforts. Punchbowl reported this as breaking news, and it was an anticipated scenario. Powell may face challenging times ahead.