Fed rate decision: Why Jerome Powell’s press conference is the real wildcard for markets

The Federal Reserve is widely anticipated to maintain its current interest rates at its upcoming meeting. However, the primary focus for traders will be Chairman Jerome Powell’s post-meeting press conference. Powell’s commentary on the timing of potential future rate cuts, as well as his response to external factors like President Trump’s economic policies and challenges to the Fed’s independence, will significantly influence both traditional and cryptocurrency markets. While a pause in rate cuts is largely priced in, the market will be scrutinizing whether Powell signals a ‘hawkish pause’ – suggesting lingering inflation concerns – or a ‘dovish pause’ – implying future easing. Analysts at Morgan Stanley anticipate a dovish signal, while ING suggests Powell’s explanation could strengthen the U.S. dollar, potentially impacting Bitcoin. Trump’s affordability measures, including mortgage bond purchases and restrictions on institutional home buying, could also introduce volatility, potentially boosting housing inflation. Powell may also address a DOJ investigation and recent bond market fluctuations.

(Source：CoinDesk)