Fed Chair reveals July interest rate decision amid Trump-Musk fight

Fed Chair reveals July interest rate decision amid Trump-Musk fight
The Street Crypto
The Street Crypto
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On July 1, Federal Reserve Chair Jerome Powell spoke at the ECB Forum and conveyed caution regarding potential interest rate cuts, reiterating that policymakers are prepared to react to the data that emerges in an environment where economic uncertainty, created by protectionist trade policies, is present.

JUST IN: #Powell says "US economy is healthy overall" pic.twitter.com/8PMv8z25dn

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Powell did not provide any indication about whether a rate cut is forthcoming in July, and stated, "I really can't say it's going to depend on the data, and we are going meeting by meeting."

He also added, "I mean, is it fair to say I know you know nothing is guaranteed. Number one, we all know this. July just too soon to seriously even consider a rate cut.” 

Earlier, Powell was referred to as "a real dummy" by President Donald Trump, who also accused him of costing the United States "a fortune" by keeping interest rates high. 

Crypto traders closely monitor inflation data and Fed announcements, as they have a direct impact on market sentiment and the flow of investment. If Powell mentions that rate cuts could occur earlier than expected, there could be bullish momentum in crypto markets.

Regarding concerns about the world economic implications of protectionism, Powell discussed the potential impact on more vulnerable countries, especially South Korea, which is highly export-dependent. 

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He said also that tariff increases, such as the new 26% Italian tariff introduced on April 2, could impact GDP growth rates.

Powell also said, "We introduced two scenarios in the May round and in the May report. For me, they were very useful on either side. They weren't symmetric, by the way, but they're on either side. For me, they were very useful in terms of my decision making, because they helped me to answer the question, given the uncertainty."

Powell has remained level-headed even as President Donald Trump has forced him to cut rates several times. So far, a July rate cut might not been in the cards, as per Powell. The crypto markets, however, have taken the news with slight optimism. 

Bitcoin, which was trading at $106,000 due to Trump and Musk's feud over the Big Beautiful Bill, is now slightly up at $107,171.41, as per Kraken. 

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