Bitcoin News Today: Trump Pressures Fed for Rate Cuts Amid Tariff Concerns and Market Volatility

Federal Reserve Chair Jerome Powell faces mounting pressure from President Donald Trump to cut interest rates, despite widespread market expectations that the Fed will maintain rates at its July 2025 meeting [1]. The central bank’s decision comes amid a broader economic context shaped by Trump’s aggressive tariff policy, which has sparked both support and concern among analysts and investors. Trump has argued that his tariffs will not fuel inflation, a claim that contradicts broader market sentiment, which fears that prolonged trade restrictions could complicate the Fed’s inflation-targeting objectives [1].

In a move that could cushion the impact of higher prices for American families, Trump has reportedly considered issuing tariff rebate checks to offset the costs of new tariffs [2]. Sen. Josh Hawley (R-Mo.) has introduced legislation proposing $600 rebates per individual, which would amount to $2,400 for a family of four. While this plan could provide immediate relief, its feasibility remains uncertain, as it hinges on congressional support and budgetary constraints. The debate over tariffs and rebates highlights the growing tension between trade policy and consumer welfare in Trump’s economic agenda [2].

At the same time, the cryptocurrency market is experiencing heightened volatility in the lead-up to the Fed’s decision. Bitcoin fell below $118,300 amid uncertainty over monetary policy, with investors closely watching Powell’s guidance on potential rate cuts and balance sheet adjustments [1]. Analysts have suggested that the Fed may signal two rate cuts in 2025, which could influence asset allocation strategies across equities, bonds, and digital assets [2]. The market currently assigns an 80.9% probability that the Fed will keep rates unchanged through July, reflecting cautious optimism that the central bank will prioritize inflation control over immediate rate reductions [3].

Meanwhile, major financial institutions are taking a more aggressive stance against crypto firms. JPMorgan has paused the resumption of banking services to Gemini and is considering similar actions against other crypto platforms that pose competitive threats [6]. The bank’s moves are part of a broader effort by financial institutions to limit crypto’s growth, with ripple effects on institutional adoption and investor confidence. Ripple itself is facing regulatory challenges, as lobbying groups target its application for a banking license. However, legal experts believe such efforts may only slow, not stop, the digital asset sector’s momentum [6].

The Trump-EU trade deal also contributed to a short-term boost in U.S. stock futures, with major indices like the Dow, S&P 500, and Nasdaq rising in response to reduced tariff tensions [4]. This development underscores the significance of trade policy in shaping global financial markets. Yet, analysts remain divided over the long-term impact of Trump’s tariff strategy, particularly with regard to metals and other key commodities. For instance, potential copper tariffs and the U.S.-Japan trade agreement are being closely monitored for their influence on inflation and rate-cut timelines [5].

As the financial landscape continues to evolve, investors are navigating a complex interplay of monetary, trade, and regulatory factors. The coming weeks will be critical in determining the Fed’s next move, which could have far-reaching implications for asset prices and market dynamics. In the crypto space, the ongoing legal and strategic battles between traditional banks and digital asset firms will also shape the sector’s trajectory in the months ahead [6].

Sources:

[1] title: Bitcoin slips below $118300 as market awaits Fed decision (url: https://m.economictimes.com/markets/cryptocurrency/bitcoin-slips-below-118300-as-market-awaits-fed-decision-ethereum-outperforms-with-etf-boost/articleshow/122993846.cms)

[2] title: Fed Forward Guidance and the Art of Asset Allocation in ... (url: https://www.ainvest.com/news/fed-guidance-art-asset-allocation-2025-2507/)

[3] title: Research (url: https://www.blockscholes.com/research)

[4] title: U.S. stock market futures rise as Dow, S&P 500 and ... (url: https://www.msn.com/en-in/money/markets/us-stock-market-futures-rise-as-dow-s-p-500-and-nasdaq-gain-on-trump-eu-trade-deal-and-tesla-surge-ahead-of-crucial-fed-week/ar-AA1JqVNf)

[5] title: Trump's Tariff Threats & Russia Deadline Send Oil Markets ... (url: https://www.btcc.com/en-US/square/Cryptopolitan/714477)

[6] title: The Paul Barron Crypto Podcast (url: https://www.spreaker.com/podcast/the-paul-barron-crypto-podcast--4747781)