For the second time, the Fed struck a break on tariff increases under the leadership of Trump, making them stable at 4.25% – 4.50%, and the cryptomarkt wasted no time back! With a comeback of $ 2.9 trillion watching investors now for potential gears after the FED has adjusted its GDP prediction. This decision comes if the Central Bank continues to follow economic conditions, inflation and job growth. The FED now expects fewer tariff reductions this year, with only 11 of the 19 FOMC members who see at least two cuts, decrease from 15 in December.
Slower reduction of balance starts in April
Crypto analyst Martyparty emphasizes that the Federal Reserve will slow down the quantitative tightening (QT) from 1 April, just as he predicted. This means that the FED will reduce the pace of balance reductions, which indicates a shift in monetary policy.
According to the plans, they will lower monthly reimbursements from the Treasury from $ 25 billion to $ 5 billion, while the limit for debts of agencies and mortgage -covered effects (MBS) retain at $ 35 billion. This step is aimed at maintaining financial stability, while it gradually reduces the interests of the FED.
Crypto -Impact
One Crypto Analyst Feefe Demeny point From that quantitative tightening (QT) does not end quickly, despite the fact that some crypto traders who expect a bull run as soon as quantitative relaxation (QE) starts. While Powell confirmed that the FED QT will again delay, but will extend it for a longer period, which means that liquidity does not flows back into the markets as quickly as some hoped.
Santiment marked That although Powell confirmed the expectations for two tariff reductions later this year, economic growth is now expected to be 1.7%, a sense of the previous 2.1% prediction. Inflation remains a concern, especially with new rates that may slid price stability. After the announcement, both crypto and shares responded positively, where santiment stated that cryptom markets could continue to reflect the S&P 500, although Altcoins could experience increased volatility.
In the meantime, the Crypto market for the FED meeting recovered and achieved a market capitalization of $ 2.9T. Bitcoin rose past $ 85k, while Eth, Sol and XRP won 5%, 7%and 10%. Hype is building the upcoming DAS speech by Trump on the crypto policy.
Powell warns against inflation and weakness of the consumer
Fed chairman Jerome Powell, however noted That the US economy remains strong, but there are signs that consumers may struggle. Inflation, although lower than before, is still somewhat high. Powell also warned that new rates and global economic shifts can slow down the progress in reducing inflation. However, he reassured that the Fed will follow the situation closely and adjust the policy if necessary.
