It is becoming a huge possibility that Fed Chair Jerome Powell could announce an emergency rate cut following Donald Trump’s tariffs, which have led to a crypto market crash. The US Central Bank will have a closed-door meeting today, which could lead to this rate cut, a move that would be positive for the market.
Fed Chair Jerome Powell To Announce Emergency Rate Cut?
A Federal Reserve release showed that the Fed Chair Jerome Powell and the Board of Governors plan to hold a closed-door meeting today, which could lead to an emergency rate cut from the US Central Bank.
According to the release, the Fed’s Board of Governors plans to review and determine the advance and discount rates the Federal Reserve banks will charge.
This development comes following the recent crypto market crash, with the Bitcoin price and altcoin prices collapsing by 7% to 12%. The flagship crypto has dropped to as low as $76,000 on the day. The global markets are also feeling the heat from Donald Trump’s tariffs. The S&P 500 and Nasdaq are currently in bear market territory.
In a recent Bloomberg interview, JPMorgan analyst Bob Michele had already raised the possibility of an emergency rate cut, predicting that the Fed would have no choice but to step in before its next FOMC meeting in May.
In an X post, market expert Anthony Pompliano stated that the Federal Reserve may have to make an emergency interest rate cut soon. He noted that inflation has fallen to the lowest levels since 2020. The expert warned that if this continues, it will be a “big problem.”
As CoinGape reported, Trump’s tariffs have also raised the odds of a US recession happening this year. Although experts like Dom Kwok, co-founder of EasyA, predict that it would be bullish for the crypto market, it could still negatively affect crypto prices.
Donald Trump
In his latest Truth Social post, US President Donald again called on Jerome Powell and the Fed to cut rates. He remarked that oil prices are down, interest rates are down, food prices are down, and there is no inflation.
As such, Trump urged the “slow-moving Fed” to cut rates. Trump’s statement comes just days after he initially called on Powell to stop playing politics and cut interest rates.
Ahead of the Fed’s meeting today, the odds for an emergency rate cut this year have surged to 26%, indicating that it could happen and probably as soon as today following the meeting.
A rate cut is bullish for the markets, including the crypto market, as it would inject more liquidity into cryptocurrencies, with investors more confident about increasing their exposure to these risk assets whenever the US Central Bank eases its monetary policies.
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