Powell to Traders: Stop Dreaming of Free Money—Zero Rates Are Dead

Fed Chair Jerome Powell just torched Wall Street’s favorite fantasy—the return of near-zero interest rates. Markets wobbled as he signaled the party’s over for cheap capital.

The New Reality:
Inflation’s sticky grip means Powell won’t play Santa to overleveraged portfolios. Traders scrambling for yield might actually have to—gasp—earn it.

Crypto Angle:
While traditional markets panic, decentralized finance keeps humming. No Fed permissions needed to chase APYs—just ask the degens farming memecoins at 3AM.

*(Bonus jab: Remember when ’transitory’ inflation meant one quarter of mild discomfort? Good times.)*

Powell rips Trump’s trade policy, despite pressure

Powell’s remarks about supply shocks echoed earlier statements, particularly in response to former President Donald Trump’s tariff-driven trade policy. On April 16, Powell warned that the volatility of U.S. trade policy may contribute to both higher inflation and slower growth.

In that scenario, Powell noted that it is unclear which of these effects the Fed will need to respond to more aggressively. At the time, he said the central bank WOULD likely wait for greater clarity before making major policy adjustments.

These statements came despite Trump’s ongoing pressure on Powell to lower interest rates. In several instances, TRUMP stated that Powell was “too late” to lower interest rates, and even called for his termination. Still, investors seem to think that it is unlikely that Trump’s statements will have immediate effects on the markets.