PowellThe rise that began after the explanations of the rise is something beyond an ordinary news -triggering movement. In order to understand this, it is necessary to deal with the current situation of the US economy in a broad framework and interpret Powell’s intention. Ultimately, the result will indicate whether the rise in crypto currencies is permanent. Let’s start.
Fed downloads interest rates
Within 1 month interests It will begin to fall and this process officially started on Friday with Powell’s giving up. The FED President gave a clear message and signaled that in the tariff-inflation relationship, he would not be insisted on “to keep interest rates high”.
However, manufacturer inflation has reached the peak of the last 3 years and the CPI has been over 2 %Fed target for 53 months. But labor markets are also weakening. The Fed has 2 tasks, as we have always mentioned. One is to reduce unemployment and the other is to prevent inflation/deflation. This is what is mentioned in the headlines in the statements as the Fed’s dual duty. As we have written and drawn for a long time, the Fed has been focusing on the inflation section for years since 2021. He had a tariff weapon to continue this.
Powell, which has been using this weapon for months, did not reduce any interest rates in 2025 and pointed out that the risk balance has changed on Friday by making a clear turn. In the full explanation text, he mentioned that “changes in the risk balance would require to adjust the policy stance ve and we said it is a last minute and we said it was time.
Why will interest rates go down?
Powell reduces interest rates not because Trump’s threats or blackmail progresses to 2 %target, not because of the progress of inflation. The main reason for this is the destruction of labor that is delayed by huge revisions. The employment market is getting worse rapidly.
“According to the latest data, only 258,000 business records were deleted from May and June data. This figure is more than the total population of the city of Scottsdale in Arizona. – TKL
Is the crypto currency rise permanent?
Yes crypto currency The rise will be permanent due to the change in Fed’s interest policy. At least 2026, including the first quarter, is expected to be like this because the FED tariffs will patiently monitor the effect of inflation. Just as he followed the decline in inflation by keeping interest rates above the neutral level for years. Since the FED will take the effect of tariffs on inflation less seriously, interest rate cuts will continue to reduce interest rates and in this process, the US stock exchanges will rise with increasing liquidity.
Will this crypto currency rise be gigantic? No, the pressure on the market will be broken, but we will not see a discount of 300BP as Trump wants, maybe 2026 will be relaxed at the end of the first quarter of 100-125bp.
Crypto currency Special reserve moves, ETF flow, regulation efforts, the US attitude change, the focus of more companies and the bank on crypto -oriented services, but the oppressed rise environment will be relieved. In other words, crypto currencies will not be gigantic due to the fact that this rise interest rate cuts do not point to a complete turn, while crypto currencies focus on themselves.
Inflation Powell, which reduces interest rates to support employment in the environment, knows that demand will increase. He also knows that this will increase inflation. However, this will be tolerated to a certain extent, as it will follow the opposite of the process in which it focuses on inflation, taking into account the employment less for years. Already 2026 will resign in the second quarter of Trump will appoint the pigeon will deliver the policy -free policy.
Responsibility Rejection: The information contained in this article does not contain investment advice. Investors should be aware that crypto currencies carry high volatility and thus risk and carry out their operations in line with their own research.
