Federal Reserve Chair Jerome Powell is set to testify before Congress and the Senate, and markets are holding their breath. With Bitcoin plunging to $98.5K and altcoins struggling, crypto investors are looking for clues on interest rate cuts, inflation risks, and what’s next for the economy.
This comes at a critical moment, with Powell under intense political pressure and global tensions flaring. The financial world wants answers and fast.
Powell is facing heat from both sides of the aisle after the Fed chose to hold interest rates steady at 4.25%–4.5% in June. President Donald Trump slammed the Fed’s cautious stance, calling it a mistake and demanding deep rate cuts of 2–3%.
Senator Elizabeth Warren and Fed Governors Michelle Bowman and Christopher Waller are also calling for earlier cuts, possibly as soon as July.
According to CME FedWatch data, the odds of a July cut stand at 23%, while chances for a September cut are much higher at 82%. Powell’s testimony is expected to address why the Fed is still holding back despite growing demands.
The crypto market is in rough shape. Bitcoin has dropped to a multi-month low, and altcoins are deep in the red. Much of this stems from fears around Trump’s proposed trade tariffs, which have added more uncertainty to an already fragile economy.
Powell is expected to talk about how these tariffs might impact the Fed’s decisions. If he leans toward easing rates, crypto prices could bounce. But if he sticks to a cautious tone, the U.S. dollar could strengthen and that usually means more pain for digital assets.
Recent U.S. airstrikes in Iran have pushed oil and gold prices higher, raising fresh concerns about inflation. The ongoing conflict between Israel and Iran is also raising the risk of a potential closure of the Strait of Hormuz, a key global shipping route.
If that happens, fuel prices could skyrocket, making it harder for the Fed to meet its inflation goals. Powell’s comments on these risks will be watched closely, as they could shape expectations for interest rate policy through the rest of 2025.
Powell’s upcoming remarks could be a turning point. Investors want to know – will he signal relief with rate cuts, or continue to play it safe?
Whatever he says, the outcome is likely to shape the market’s direction for months to come, especially in crypto.
Jerome Powell’s testimony is crucial for crypto investors seeking clues on interest rate cuts, inflation risks, and the economy’s future. His remarks can significantly impact market sentiment and Bitcoin’s price direction.
The Fed held rates steady in June, facing pressure for cuts. CME FedWatch data shows a 23% chance for a July cut and 82% for September, indicating the market anticipates cuts later in 2025.
Recent U.S. airstrikes in Iran and the ongoing Israel-Iran conflict are pushing oil and gold prices higher, raising inflation concerns. The risk of a Strait of Hormuz closure could further disrupt fuel prices, influencing the Fed’s rate decisions.
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