Members of the Federal Reserve express their readiness to act if necessary while discussions about tariffs continue.
Bitcoin
$82,901 hovers around $83,700, and today’s positive Producer Price Index data has not eased market tensions, as the effects of tariffs will begin to show in the data starting this month and will be fully understood in 2-3 months.
Bitcoin Tests New Heights
The leading cryptocurrency recently tested the $84,000 mark but now settles around $83,700. Some experts suggest that the $84,000 threshold is crucial for a rapid price surge, while Fed statements indicate a different approach this time. Collins stated, “The Fed is definitely ready to help stabilize the market if necessary.”
Bond yields have not achieved the desired outcome, and despite a 90-day pause, U.S. stock markets maintain their weakness. The rising tensions with China negatively affect America’s predictability, and the Fed must signal a resumption of bond purchases to promote expansion. If this is insufficient, they may need to lower interest rates ahead of the upcoming meeting in less than a month.
Alternatively, the Fed could compel banks to engage in bond purchases.
“There is significant progress in tariff discussions. More than 15 trade proposals are on the table. Trump hopes for an agreement before the 90-day deadline.” – White House Press Secretary Leavitt