Fed Chair Powell hints at July interest rate cut
Fed Chair Powell hints at July interest rate cut originally appeared on TheStreet.
On July 1, Federal Reserve Chair Jerome Powell spoke at the ECB Forum and conveyed caution regarding potential interest rate cuts, reiterating that policymakers are prepared to react to the data that emerges in an environment where economic uncertainty, created by protectionist trade policies, is present.
Powell did not provide any indication about whether a rate cut is forthcoming in July, and stated, "I really can't say it's going to depend on the data, and we are going meeting by meeting."
He also added, "I mean, is it fair to say I know you know nothing is guaranteed. Number one, we all know this. July just too soon to seriously even consider a rate cut.”
Earlier, Powell was referred to as "a real dummy" by President Donald Trump, who also accused him of costing the United States "a fortune" by keeping interest rates high.
Crypto traders closely monitor inflation data and Fed announcements, as they have a direct impact on market sentiment and the flow of investment. If Powell mentions that rate cuts could occur earlier than expected, there could be bullish momentum in crypto markets.
Regarding concerns about the world economic implications of protectionism, Powell discussed the potential impact on more vulnerable countries, especially South Korea, which is highly export-dependent.
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He said also that tariff increases, such as the new 26% Italian tariff introduced on April 2, could impact GDP growth rates.
Powell also said, "We introduced two scenarios in the May round and in the May report. For me, they were very useful on either side. They weren't symmetric, by the way, but they're on either side. For me, they were very useful in terms of my decision making, because they helped me to answer the question, given the uncertainty."
Powell has remained level-headed even as President Donald Trump has forced him to cut rates several times. So far, a July rate cut might not been in the cards, as per Powell. The crypto markets, however, have taken the news with slight optimism.
Bitcoin, which was trading at $106,000 due to Trump and Musk's feud over the Big Beautiful Bill, is now slightly up at $107,171.41, as per Kraken.
Fed Chair Powell hints at July interest rate cut first appeared on TheStreet on Jul 1, 2025
This story was originally reported by TheStreet on Jul 1, 2025, where it first appeared.
The remarks from Fed Chair Powell suggesting a potential rate cut in July signify an active attempt at moderating economic uncertainty, hinting towards more accommodative monetary policy amid growing concerns over the pandemic's impacts.
FED主席鲍威尔暗示七月将实施降息，此举反映了货币政策对全球经济形势的灵活应对策略。
The hint by Fed Chair Powell of a potential interest rate cut in July signifies an optimistic yet cautious approach toward economic recovery. The move if implemented, will be watched closely for its impact on business investment and consumer spending.
Powell's hint at a July interest rate cut underscores the Fed’ commitment to preserving economic stability amid global uncertainties, signaling that officials will likely find ways around cautious fiscal measures if necessary.
''A hint of an interest rate cut by Fed Chair Powell could trigger a surge in financial markets as investors eagerly anticipate further monetary policy easing to counteract the economic slowdown, but care must be taken not to overstimulate inflationary pressures.''
In his latest comment, Federal Reserve Chairman Powell hints at the possibility of a rate cut in July to support economic growth and address lingering concerns about inflationary pressures.
This hint by Fed Chair Powell reinforces market speculation towards a potential interest rate cut in July, signaling an expectation of the central bank's vigilance towards maintaining stability amidst ongoing global economic uncertainties.
