After the president’s surprise tariff announcement sent markets into a tailspin, all eyes turned to the Federal Reserve for a possible response. But despite the panic on Wall Street, the Fed isn’t flinching. Instead of rushing to act, it’s choosing to wait and watch.
So, what’s keeping the Fed on pause while stocks tumble and Bitcoin holds its ground? And why is one of the world’s most volatile assets suddenly looking more stable than traditional markets? Let’s break it down.
Fed Chair Jerome Powell, speaking at the Society for Advancing Business Editing and Writing Annual Conference, said the Fed isn’t ready to move on interest rates just yet. He explained that they need more clarity before considering any policy shifts and that it’s still too soon to know the right next step for monetary policy.
Tariffs add uncertainty
The Fed pointed out that the impact of higher tariffs is still unclear. While they could push inflation higher and slow down economic growth, the main goal remains keeping long-term inflation expectations stable. The Fed wants to make sure any short-term price spikes don’t turn into ongoing inflation.
Trump’s tariffs hit harder than expected, causing a major global stock sell-off. JPMorgan now sees a 60% chance of a global recession if the tariffs stay in place.
Bitcoin (BTC) briefly dropped below $83,000 but stayed mostly flat over the past 24 hours. Despite hopes for a softer stance from the Fed, Bitcoin is holding up better than stocks. The Nasdaq fell 4.2% today, following a 6% drop the day before.
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Just before Powell’s speech, President Trump criticized him on Truth Social, calling it the “perfect time” to cut interest rates. He added that Powell is usually slow to act, but he can change that now.
“Cut interest rates Jerome, and stop playing politics.“
Some analysts were surprised by Bitcoin’s strength in the face of market volatility.
Bloomberg’s James Seyffart noted that BTC remained above $80,000 even as other risky assets and gold fell. Adam Back, founder of Blockstream, said he has long believed Bitcoin’s link to traditional markets was overstated. While Bitcoin has sometimes moved in sync with those markets, he added, it’s now showing signs of moving independently.
XRP jumped 12% in just two days, reaching $2.12. The rally was driven by strong buying pressure and fresh volatility after China announced new tariffs on the U.S. Technical indicators look bullish, with XRP rebounding from $1.98 and showing a MACD crossover. With resistance at $2.28, XRP could head toward $2.58 if Bitcoin’s momentum continues.
Bitcoin is currently trading at $83,810, up over 0.7% in the past day.
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