As the stock market collapsed on April 4, Jerome Powell, chairman of the US Federal Reserve Bank, said the Trump administration’s “mutual tariff” greatly affected the economy and potentially “increased inflation and slow growth.”
At the April 4th meeting, Powell maintained a careful approach, and the tariffs “in the coming quarter” soaring that the interest rate cuts showed a soft landing while complicating the 2% inflation goal of the Fed. Powell said.
“Target is likely to create a temporary inflation increase, but the effect may last.”
Before Powell’s speech, President Donald Trump took B from Powell, saying, “Reduced interest rates” in posts about truth socialism to the Fed Chairman.
Source: Truth Society
The Fed is currently facing important choices. If the economy shows signs of weakening, it will stop the rate cuts throughout the year or respond quickly to a decrease in interest rates. The Fed official pointed out that the economy is in a good place, but Powell said it was.
“It is too fast to say what the proper path is for monetary policy”
On April 4, the unemployment rate increased from 4.1%in February to 4.2%in March, but on the contrary, non -farm salary in March added 228,000 jobs to exceed expectations and strengthen economic intensity. In March, the Consumer Price Index (CPI) also rose 2.8% year -on -year, and data is scheduled for March 10.
The above figures emphasize the powerful labor market, but emphasize the inflation problem with nagging, which is consistent with the PoWell warning on potential tariffs.
Related: Bitcoin Bulls is the Second World War of Trade Wars, defending $ 80K support.
POWELL’s intention to increase inflation and slow economic growth occurred on the day when DOW reduced the loss of two days in the 2 -day loss in S & P 500.
“Today, $ 3.25 trillion has disappeared in the US stock market. $ 5.4 billion has been added to the encryption market.”
The stock market loss was $ 3.5 trillion. Source: Watcher Expert / X
Bitcoin to enjoy more volatility
Most investors expect Bitcoin (BTC) to increase in the short term. Powell’s remarks on the tariffs that induce “high inflation” and “high unemployment” can attack traditional market investors and urge BTC’s pivot.
In fact, analysts pointed out that BTC prices seem to be “different coupling” in recent stocks. On April 2, Bitcoin recorded the highest level on the 9th before President Trump launched “Mutual Target” on “Day of Liberation,” but the price was sold rapidly when tariffs were released in the White House pressure.
Since then, Bitcoin has been steadily maintaining more than $ 82,000, and as the US stock market collapsed on April 4, BTC reflects the price measures to $ 84,720, reflecting the unusual price of standards.
BTC/USD price is the main stock index. Source: X / Cory Bates
Independent market analyst Cory Bates posted and said the above charts.
“(…) Bitcoin is separated right in front of our eyes.”
Market volatility can increase the price of Bitcoin to a hedge to uncertainty by retaliating with a 34%tariff on US products and reducing Powell’s interest rates.
During the 2018 US-HINA Trade War, Bitcoin Price has not increased for a year. However, when the trade war expanded in mid -2018, remarkable volatility and 15%prices occurred, followed by China’s retaliation measures after imposing tariffs on Chinese products in July.
Related: Bitcoin feelings fall to 2023, but ‘risk of environment’ can cause BTC Price Rally.
This article does not include investment advice or recommendation. All investment and trading measures include risks, and the reader must do his own research when making a decision.