Investors looking for a significant dovish shift from the Fed after the president’s tariff announcement on Wednesday, coupled with the two-day decline in stock prices, will need to be patient a while longer.
“We are in a strong position to await more clarity before contemplating any changes to our policy stance,” stated Fed Chair Jerome Powell in his prepared remarks at the Society for Advancing Business Editing and Writing Annual Conference. “It’s too early to determine the correct trajectory for monetary policy.”
Addressing the unexpectedly high tariffs, Powell emphasized that it is the Fed’s responsibility to ensure that what is anticipated to be a temporary spike in inflation does not turn into a long-term issue.
As speculation increased before Powell’s remarks, possibly hoping for a more dovish approach, bitcoin (BTC) briefly rallied but then fell back below $83,000, remaining nearly unchanged from the previous day. Meanwhile, the crypto market is faring better than stocks, as the Nasdaq has now dropped 4.2% after a 6% decline yesterday.
President Trump expresses his views
Just moments before Powell’s speech, the president challenged the Fed chair directly.
“This is an ideal opportunity for Fed Chairman Jerome Powell to cut interest rates,” Trump wrote on Truth Social. “He is often ‘late,’ but now he has the chance to change that perception swiftly … Cut interest rates, Jerome, and steer clear of political games.”
