Fed's Waller: Geopolitical Conflicts, Tariffs Could Cause New Price Pressures
The expectation of a Fed rate cut is decreasing and this is negatively affecting the cryptocurrency market. BTC has experienced a major decline in the last 24 hours and has fallen to $94,543. The DXY index rose rapidly due to yesterday's US data and stock markets were negatively affected by this situation. Now, shortly before the Fed minutes are announced, Fed member Waller made critical statements.
Evaluations on the Fed and the Crypto Market
The significant decline in BTC caused previous gains to quickly melt away. While two rate cut scenarios were priced in this year, yesterday’s data created an expectation that there could only be one rate cut. In addition, the risk of Trump increasing prices by imposing additional tariffs is also causing concerns in the markets.
Fed member Waller made important statements during the preparation of the article. Here are the main points that stand out from his statements:
He said he would support further rate cuts for 2025, but stressed that the pace would depend on inflation developments.
Inflation is expected to continue in line with the 2% target.
It was stated that base effects will play an important role in improving inflation in 2025, and more recent monthly and short-term data also give signals of improvement.
It was noted that the progress in inflation has been slow in recent times, but much of this is due to less reliable indicators such as housing and non-market services.
Geopolitical conflicts and tariffs could become a new source of price pressure, it warned.
It was stated that the economy is generally on solid foundations and there is no indication of a significant weakening in the labor market in the coming months.
These developments could increase volatility in both traditional financial markets and the cryptocurrency market.