Powell Highlights Tariffs’ Impact on Inflation and Cryptocurrency Volatility

Federal Reserve Chairman Jerome Powell underscored the inflationary pressures stemming from tariffs during recent meetings, with the term 'tariffs' cited nearly 200 times. The effective tariff rate now exceeds 17%, and its influence on inflation is becoming increasingly evident. While the Fed has yet to finalize interest rate decisions, another inflation report is anticipated, keeping markets on edge.

U.S. inflation data for July showed a slight uptick, with CPI at 2.7% (in line with expectations) and Core CPI rising to 3.1%. The monthly Core PPI increased by 0.3%, matching forecasts. These figures are critical for shaping expectations around potential Fed rate cuts, though consensus among members remains elusive—only five of the required seven votes currently favor easing.

Cryptocurrencies are expected to remain volatile as macroeconomic uncertainty persists. Today’s CPI and tomorrow’s PPI data will heavily influence market sentiment, particularly for digital assets. Traders are closely monitoring Fed rhetoric for clues on future monetary policy.