- Fed rate cuts possible if Trumpโs tariffs are avoided.
- Market uncertainty may delay rate cut expectations.
- Cryptocurrency could react to macroeconomic changes.
Austan Goolsbee, President of the Chicago Federal Reserve, indicated potential interest rate cuts could occur if the tariffs proposed by Donald Trump are avoided.
Goolsbeeโs comment highlights potential shifts in monetary policy, affecting markets and possibly influencing digital assets like BTC and ETH.
President Austan Goolsbee of the Chicago Fed shared insights on the economic impact of proposed tariffs by Donald Trump. He suggested the possibility of rate cuts if a trade deal is achieved to avoid such tariffs. Goolsbee emphasized that the stagflationary impact of tariffs poses a significant challenge to the central bankโs policy objectives. The expectation of rate cuts was initially predicted for September, though increasing trade and tariff uncertainties could alter this timeline. Market participants are closely watching developments to gauge broader economic implications.
โOver the longer run, if they are putting in place tariffs that have a stagflationary impactโฆ thatโs the central bankโs worst situation. We will have to see how big the impacts on prices are. I know people hate inflation.โ โ Austan Goolsbee, President, Federal Reserve Bank of Chicago (source).
The prospect of new tariffs contributes to a volatile economic environment, affecting various markets including equities and cryptocurrencies. Such conditions introduce inflation risks and complicate monetary policy decisions. Historically, safe-haven assets like BTC and gold tend to benefit during heightened uncertainty driven by trade tensions. Despite the discussions on tariffs and rate cuts, no immediate changes in on-chain data or funding were reported. As the situation evolves, stakeholders remain attentive to further updates from the Federal Reserve and other authorities.
No recent statements from major crypto figures have been recorded on these developments, indicating a measured response across the digital asset industry. The crypto communityโs reaction remains muted, with no significant GitHub activity or major announcements resulting from Goolsbeeโs statements.
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