Fed's Monetary Policy and Its Impact on the Cryptocurrency Market
Fed Chairman's Statement on Inflation and Interest Rate Policy
On June 19, the Fed Chairman, Mr. Powell, made an important statement at a press conference. He predicted that the trade war under the Trump administration could significantly push up U.S. inflation in the coming months. He emphasized that to begin reducing interest rates, the central bank needs clear confidence that inflation is decreasing. The current policy maintains a "slightly tight" level to stabilize the economy.
Interest Rate Outlook for 2025 and Macroeconomic Targets
Predictions in the dot plot suggest that the United States still expects two interest rate cuts in 2025. Mr. Powell confirmed that the Federal Reserve is closely monitoring the transmission impact of tariffs while maintaining an inflation target of 2%. The cryptocurrency market may react positively or negatively based on these policies.
Current Monetary Policy and Long-Term Impact
Based on the current inflation situation, Mr. Powell stated that the Fed's monetary policy still needs to apply certain limits to control the economy. The current interest rate is not high and is consistent with a "slightly tight" policy. This is considered an appropriate adjustment to avoid disrupting the recovery process. In this context, cryptocurrency investors need to closely monitor policy developments to timely adjust their investment strategies.
Conclusion: Policy Adjustment Trends and Market Influence
The Fed's monetary policy is moving towards caution in the context of global economic uncertainty and internal factors of the U.S. economy. Analysts predict that this policy may remain stable until the end of 2024, after which it might transition to a more relaxed phase. This will significantly impact cryptocurrency prices, especially for volatile coins like BTC and ETH. Cryptocurrency investors need to closely track this trend to leverage financial market fluctuations and grow their investment portfolios.
