Yigit Taha OZTURK 
The Chairman of the U.S. Federal Reserve (Fed), Powell, drew the market’s attention with his recent statements. Powell‘s comments provided crucial insights into interest rate policy and inflation expectations. Following the remarks, the prices of cryptocurrencies like Bitcoin and Ethereum experienced fluctuations. Here are Powell‘s messages and their impact on the markets…
Message on Interest Rate Decisions
Powell stated that the Fed will not rush to lower interest rates, saying, “We can wait for more clarity.” He mentioned that they expect inflation to reach 2%, but inflation expectations have risen due to the impact of tariffs.
Regarding the economy and labor market, Powell noted, “Many indicators show that the labor market is solid and balanced.” He also pointed out that significant progress has been made in reducing inflation, but there are signs of a slowdown in consumer spending. He emphasized that uncertainty remains regarding the impact of policies.
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One of the critical messages for the markets was, “Fed policy is not on a pre-determined path. If inflation progress halts, we may continue tight policies, but if the labor market unexpectedly weakens or inflation falls, we could ease.” Powell also added, “We will look at the possibility of inflation exceeding our target in the medium term, and despite uncertainty, the U.S. economy is in a good position.”
Customs Tariffs and Inflation Expectations
The remarks on customs tariffs were particularly noteworthy. Powell said, “It is still very uncertain how long customs tariffs will be applied.” He also stated that there is no need to redefine price stability.
Crypto markets reacted sensitively to Powell‘s statements. The lack of a clear message regarding interest rate cuts affected the movements of major digital assets like Bitcoin and Ethereum. In the coming days, as clarity on Fed policies emerges, more pronounced price movements may be observed in the markets.
In the coming days, market volatility may continue. It will be important for crypto investors to move cautiously during this period of uncertainty.
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