Analysis: The market is focused on Powell's speech this week, with interest rate cut expectations and global economic recession risks remaining the focal points
Odaily Planet Daily reported that Carlos Guzman, a research analyst at cryptocurrency market maker GSR, stated that market participants will closely watch Federal Reserve Chairman Jerome Powell's speech this week. They are eager to understand the Fed's stance on potential recession issues. He noted, "When the tariff policy was put on hold, people's main concern was that it could lead to a massive economic contraction. At that time, the market expected interest rate cuts four times this year."
After Trump announced last week a 90-day suspension of most tariffs, expectations for a recession have decreased and so have expectations for interest rate cuts. However, Guzman mentioned that the market still anticipates more rate cuts than before Trump's announcement of the tariff pause. He said: "If the global economic situation looks bad, the Fed may implement more stimulus policies. This could be positive for cryptocurrencies in the medium term, although in the short term due to recent volatility, the impact may be smaller."
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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