Key Takeaways From Powell’s Harvard Remarks Complicate Fed Outlook

Federal Reserve Chair Jerome Powell's remarks at Harvard provided a mix of warnings and ambiguity, leaving markets, including Bitcoin, searching for clear direction. Powell acknowledged high economic uncertainty, stating policymakers "don't know" the full impact of current pressures and emphasizing that monetary tools do not affect supply shocks. He noted that tariffs could add 0.5% to 1% to inflation, though he maintained confidence that inflation expectations remain "anchored," despite the Fed struggling to hit its 2% target. Powell also flagged concerns about the labor market and reiterated a strong warning about the U.S. national debt growing unsustainably fast, a narrative that reinforces Bitcoin's long-term bullish thesis as a hedge against fiscal instability. However, he dampened immediate expectations by confirming the Fed is "not yet discussing future actions," leading to market indecision focused more on potential rate timing than immediate shifts.

(Source：BeInCrypto)