Jerome Powell Says Trump Tariff Inflation Has Begun, BTC Crashes

Fed Chair Jerome Powell has sparked a bearish sentiment among market participants following his FOMC speech. Powell indicated that inflation is likely to rise higher in the coming months thanks to the Trump tariffs. Meanwhile, the Bitcoin price has crashed on the back of this hawkish statement from the Fed Chair.

Jerome Powell Says This Is The Beginning Of Tariff Inflation

During his FOMC speech, the Fed Chair stated that what the market is seeing now is the very beginning of tariff inflation. Based on this, the Fed expects inflation to trend higher in the coming months, especially if the reciprocal tariffs take effect following the August 1 deadline.

Jerome Powell’s speech followed the FOMC meeting in which the Fed decided to hold rates steady amid concerns of rising inflation. The Fed Chair said that there are so many uncertainties left to resolve and that it feels like there is much to come.

He also mentioned that they have yet to make any decision about a September rate cut, as they don’t do that in advance. However, his speech suggests that the Fed is leaning towards holding rates at that meeting.

Jerome Powell further commented on the Trump tariffs, stating that they have to think of it as still being in the quite early days of assessing the impact of the tariffs. However, he noted that the tariffs are starting to show in some consumer prices. He added that they will have to watch and learn empirically about the process.

The Fed Chair also remarked that it will be difficult to determine if the data will be clear by the September meeting. He claimed that their focus is to get the timing right, in relation to monetary easing.

Jerome Powell’s speech sounded more hawkish than dovish this time around, sparking a bearish sentiment among market investors. TradingView data shows that the BTC price crashed below $16,000 amid the speech from as high as $117,500.

Boluwatife Adeyemi

Boluwatife Adeyemi is a well-experienced crypto news writer and editor who has covered topics that cut across several niches. His speed and alacrity in covering breaking updates are second to none. He has a knack for simplifying the most technical concepts and making them easy for crypto newbies to understand.

Boluwatife is also a lawyer, who holds a law degree from the University of Ibadan. He also holds a certification in Digital Marketing.

Away from writing, he is an avid basketball lover, a traveler, and a part-time degen.

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