Dogecoin News Today: Tariffs and Tight Lures: How Trump’s Policies Fuel Inflation and Shape the Fed’s Dilemma

The upcoming week is poised to have a significant impact on both the U.S. financial markets and the broader cryptocurrency sector, driven by key inflation data releases, the Federal Reserve’s policy trajectory, and the interplay between macroeconomic conditions and asset performance. Investors, traders, and analysts are closely monitoring developments ahead of the Federal Reserve’s September meeting on Sept. 17, where a rate cut is all but assured given the weakening labor market and persistent inflationary pressures.

The Federal Reserve is under increasing pressure to address a dual mandate challenge: managing inflation while supporting employment. Recent nonfarm payroll data showed a mere 22,000 jobs added in August, with revisions pushing June’s numbers into negative territory. Unemployment has risen to 4.3% as of July 2025, the highest level since 2021, with over 892,362 layoffs reported year-to-date. Fed-funds futures traders have priced in a 100% probability of a rate cut in September, with an 11% chance of a 50-basis-point move, according to the CME FedWatch tool.

However, the trajectory of inflation, particularly as measured by the Consumer Price Index (CPI), may influence the magnitude and timing of those cuts. The latest projections from Bank of America suggest that headline CPI rose 0.3% month-over-month in July and is expected to climb to 2.9% year-over-year, marking the highest annual increase since July 2024. Core CPI, which excludes volatile food and energy, is forecast to reach 3.1%. These figures indicate that inflation remains stubbornly elevated, largely due to the ripple effects of President Donald Trump’s tariff policies. Bank of America’s economists note that tariffs are increasingly being passed through to consumers, particularly in household furnishings, apparel, and recreation, and will likely remain a drag on price stability through late 2025.

The release of the August CPI data on Sept. 11 will be a pivotal moment. If the report confirms continued inflationary momentum, it could delay or limit the scale of the Fed’s rate cuts. This uncertainty has led to shifting expectations across the market. For example, while the broader stock market appears poised for gains if the Fed acts, cryptocurrencies have also shown signs of volatility. Altcoins such as Dogecoin and Solana have seen recent price surges, with Dogecoin rising over 5% in the past 24 hours and Solana up nearly 2%. These movements are being attributed to a combination of macroeconomic optimism, regulatory developments like the proposed Dogecoin ETF, and speculative trading activity.

In the cryptocurrency space, market dynamics are closely tied to broader financial trends. Bitcoin, for instance, remains in a tight trading range near $110,807, failing to break through key resistance levels. Analysts have highlighted the importance of the $112,000 threshold, with some suggesting that a breakout could trigger a broader market rally. Ethereum, while stable, has also been trading within a narrow band, reflecting cautious sentiment. The overall crypto market capitalization stood at $3.83 trillion, with a slight 0.56% gain over the past 24 hours.

The interplay between inflation and interest rates is also affecting the broader investment landscape. With the Fed expected to cut rates, investors are shifting capital toward riskier assets, including equities and cryptocurrencies. The U.S. Treasury market has already responded to the rate-cut expectation, with yields falling as investors anticipate lower borrowing costs. Meanwhile, the bond market will be closely watching the Producer Price Index (PPI) and initial jobless claims data for further signals of economic slowdown.

Looking ahead, the full week of economic and market-moving events will remain in focus. On Sept. 11, the CPI report will be the key inflation indicator, followed by the preliminary reading of consumer sentiment on Sept. 12. These releases will provide a comprehensive view of the economic backdrop as the Fed prepares to act. In the crypto sphere, while altseason appears to be gaining traction, the market remains sensitive to macroeconomic cues. Traders and investors alike will be watching not only the Fed’s rate decision but also the extent to which inflation data influences the path of monetary policy.

Source: [1] Stock-market bulls are banking on rate cuts — CPI inflation ... (https://www.marketwatch.com/story/wall-street-sees-september-rate-cut-as-sure-thing-cpi-inflation-data-may-have-a-lot-to-say-about-what-comes-next-e530b506) [2] Major Wall Street firm reveals inflation forecast ahead of ... (https://www.thestreet.com/economy/major-wall-street-firm-reveals-inflation-forecast-ahead-of-cpi-this-week) [3] Dogecoin Leads Altcoin Rally as XRP, Tron and Solana Rise (https://finance.yahoo.com/news/dogecoin-leads-altcoin-rally-xrp-030255384.html) [4] BTC, ETH, XRP, BNB, SOL, DOGE, ADA, LINK, HYPE, SUI (https://cointelegraph.com/news/price-predictions-9-5-btc-eth-xrp-bnb-sol-doge-ada-link-hype-sui) [5] Bitcoin, Dogecoin, Solana Gain; Ethereum Steady: Analyst ... (https://www.benzinga.com/crypto/cryptocurrency/25/09/47539828/bitcoin-dogecoin-solana-gain-ethereum-steady-analyst-says-btcs-breakout-past-this-level-could-be-a-massive-trigger) [6] What To Expect in Markets This Week: August Inflation ... (https://www.investopedia.com/what-to-expect-in-markets-this-week-august-inflation-data-apple-iphone-event-updates-from-nvidia-oracle-gamestop-11803381) [7] Inflation in focus as September Fed meeting nears (https://finance.yahoo.com/news/inflation-in-focus-as-september-fed-meeting-nears-what-to-watch-this-week-120006808.html)