Economy: Will the Fed reduce its main rates and calm the game?

Economy: Will the Fed reduce its main rates and calm the game?

Fed has cards in hand. If the trade war of Donald Trump is doing causes confusion on the financial marketsThe US federal reserve system can decide to calm the game. In fact, the publication of consumer price index (IPC) (IPC) than expected in March 2025 could encourage the Fed to reduce its main rates at the next monetary policy meeting. A decision that investors would welcome as a breath of fresh air, even in the cryptocurrency sector.

Key points of this article:

  • The publication of the consumer prices index than expected in March 2025, has aroused the hope of a Fed leadership rate.
  • Trade tension between the United States and China continued to weigh financial markets and emphasized the expectations of the Fed’s decisions.

IPC lower than expected: towards a decline in line?

L ‘Consumer price index (IPC) in March 2025 surprised analysts by publishing an increase of only 0.2 %, compared to 0.3 % expected. Over a year,inflation It is 3.8 %, compared to 4.1 % February. This data could encourage Federal reserve To reduce the level of leaders, currently set between 5.25 % and 5.50 %, at its meeting 7 May.

Probabilitydecline increased from 30 % to 40 % after publication IPC And investors now hope that Fed It takes into account the slowing of inflation and tensions in the financial markets to soften its monetary policy.

The cryptocurrency market, and especially bitcoins, could apparently benefit from this decline Fed Míra leadership, Because more adaptable monetary policy would support risk assets such as cryptocurrencies.

If Donald Trump's trade war causes confusion on financial markets, the US federal reserve system can decide to calm the game by lowering its rate. Therefore, a revival of risky assets, including bitcoins and cryptos, are part of ...
Tensions between the US and China are financial markets under voltage

Pressure financial markets …

The price of bitcoins currently oscillates around $ 82,000 after reaching Summit In early April $ 85,000. Decline It could allow BTC to run up and cross the 90,000 stamp again.

However, the tension of trade between the United States and China continues to weigh on the market. Declaration Donald Trump On social networks notifications of a new increase Customs duty on Chinese imports caused a decrease in financial markets and increase volatility cryptocurrencies.

From Financial marketsthey also await a decision Fed. S&P 500 and Nasdaq have an immensely distant In recent days, investors have worried that international war The United States and China It does not weigh global growth and profits of societies.

Increase in Customs duty marked Donald Trump It could also lead to an increase in consumer prices and a decrease in demand. American companies that have already faced increasing production costs could see that their margins are reduced.

If Donald Trump's trade war causes confusion on financial markets, the US federal reserve system can decide to calm the game by lowering its rate. Therefore, a revival of risky assets, including bitcoins and cryptos, are part of ...
Fed’s decision is expected with a mixture of hope and anxiety of financial markets

… But also Fed!

PUSH Fed Therefore, investors will be AA a decline in the main rates He supported the US economy and assured financial markets.

But there Federal reserve they face dilemma. On the one hand, the inflation slows down and was able to justify the decline in leaders. On the other hand, trade tension between the United States and China creates uncertainty about the world economies.

Jerome PowellFed President, he will have to find a Scales Between the two factors. The decline in rates could support the US economy, but could therefore feed inflation and create speculative bubbles in the financial markets. The investors Therefore, the Fed’s decision is waiting 7th May.

While Donald Trump continues to have confusion, the US federal reserve system may decide to reduce its main rates to support the economy. A decision that investors would welcome as a breath of fresh air, even in the cryptocurrency sector. It remains to find out whether Jerome Powell, President of the Fed, takes into account the slowing of inflation and tensions on the financial markets Soften your monetary policy.

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