Powell’s Rate Cut Signals and Trump’s Intel Deal Fuel Market Optimism

Federal Reserve Chair Jerome Powell’s dovish stance has reignited market expectations, with the probability of a September rate cut jumping from 75% to 90%. This shift has injected fresh momentum into risk assets, including cryptocurrencies, as investors anticipate looser monetary conditions.

Meanwhile, former President Donald Trump announced a pivotal agreement with Intel, revealing plans for the U.S. government to acquire 10% of the chipmaker’s shares. This strategic move aims to counter tariff pressures amid ongoing U.S.-China tensions. The deal follows similar arrangements with Nvidia and Apple’s $600 billion investment pledge, collectively forming a bulwark against inflationary pressures on tech products.

Trump’s remarks also touched on Powell’s rate cut signals, though the full implications for digital assets remain speculative. The convergence of accommodative monetary policy and strategic trade maneuvers creates a fertile ground for crypto markets, though potential risks loom on the horizon.