Stock and cryptocurrency financial markets hope that on Wednesday, May 7, 2025, the US central bank, the Federal Reserve, made a decision on interest rates.
There is a broad consensus that interest rates will remain the same, but the tone provided by agency president Jerome Powell in a subsequent speech could have an impact on market behavior.
After three consecutive cuts since January, the fees remained in the 4.25% to 4.5% range after three consecutive cuts in the previous few months. According to a survey of CME Group expectations, there is little chance that the Fed will take this opportunity to establish new cuts.
Federal Reserve President Jerome Powell shows there is no urgency to change monetary policy. In his words, the economy is “generally strong,” and it strengthens the possibility that there is a “solid” labor market and the rates remain unchanged.
According to the CME, by June 18th, the chances of reductions will increase to 25%, and next July 30th will rise to 75%. This takes into account the fact that in March the Fed maintained its forecast to cut two interest rates this year.
The Fed has not shown any intention to lower tile fees anytime soon despite Trump
President Donald Trump has publicly said he is looking at interest rate cuts as quickly as possible to avoid the recession, but the Fed is maintaining a “waiting” strategy. This position They are trying to get time to assess how the impact of commercial measures taken by the government is manifesting in the economy.
As Cryptootics reports, the Trump administration is proceeding with international negotiations on import duties after the suspension established for the measure. This was rebounded in the market after a fall that passed before the announcement of tariffs that brought fears of inflation and recession.
It fell for the second consecutive month despite fears of greater US inflation, according to the consumer price index issued in April.
“The data was solid enough to allow the Federal Reserve to remain on the sidelines while monitoring the impact of tariffs and inflation expectations,” said Nancy Vanden Hauteng, a leading economist in Oxford Economics.
Douglas Porter, chief economist at BMO Capital Market, said “we are waiting for more information on how tariff conflicts are spreading through the labor market and the global supply chain.”
Bitcoin and Action slow down impulses
The intimacy of this type of advertising usually results in greater caution among operators.and even more, you can convert into a careful movement of prices.
Together, both the stock market and Bitcoin opened the week, as shown below, with the brakes on the upward trend experienced by the previous trend.
usually, Rate determination usually produces high volatilityeven if they remain unchanged because of the messages Powell will provide in his subsequent speech. When it comes to providing an optimistic look to the economy, markets tend to respond to consolidation or upwards. Otherwise they need to respond.
Thus, investors’ attention is placed not only on the decision itself, but also on the signs that could arise in the next step of the central bank in the middle of the economy that continues to show mixed signs.
Anyway, Bitcoin shows greater strength than the stock marketI recovered the price more than two months ago after dropping to at least four months. By comparison, the S&P 500 (SPX) on the other hand has since recovered from levels just a month ago before falling to a yearly estimate.
Currently, BTC quotes USD 94,000. That’s 13% below the previous maximum of US$109,300 registered three months ago on President Trump’s assumption date on January 20th.
This behavior hopes that Bitcoin will reinvigorate new record price trends, and annual liquidity increases will be driven by interest rate cuts. However, in the short term, this could be delayed depending on the Fed’s decision.