Investors’ eyes were on Fed Chair Jerome Powell’s speech today. This speech, which was added to the calendar later, sparked great curiosity, especially at a time when expectations for interest rate cuts are strengthening. Rumors that emerged in the last 24 hours about Powell’s possible resignation further increased the importance of the meeting.
Powell Spoke, But Gave No Signal
According to the speech text published on the Fed’s website, Powell, in his opening remarks at the event, only made statements about the history and mission of the International Finance Division. There was no message regarding interest rate cuts, nor any hint about resignation.
Since the content of the speech included no comments about the Fed’s monetary policy or economic outlook, the “guidance” that the markets were expecting did not materialize. This made the impact of the speech on the market limited, contrary to expectations.
Resignation Rumors Proven False
There is no reference to the resignation claims in Powell’s speech. This shows that, for now, the rumors are baseless. In fact, this situation is positive for all risk asset classes, especially the crypto markets. Because Powell remaining in office carries critical importance for institutional continuity at the Fed.
The sudden resignation of a Fed chair could create distrust in the markets and could have posed a pressure factor, particularly for cryptocurrencies that are prone to volatility.
Goolsbee: “Inflation Reports Are Excellent, But There’s Uncertainty”
Recent statements by Fed member Austan Goolsbee also drew attention. Goolsbee said that the inflation data received so far is excellent but that it’s hard to predict whether this outlook will continue over the next 1–2 months. Especially the new tariffs brought to the agenda by the Trump administration could create economic uncertainties that may be a significant obstacle in the Fed’s decision-making process.
Tariffs and the Fed’s Position
Statements from the White House indicated that the European Union came to the negotiating table under President Trump’s customs tariff pressure and that a meeting with Chinese President Xi could take place this week. However, until the uncertainty brought by these tariffs is fully eliminated, it seems that the Fed will not be in a hurry to cut interest rates.
Markets Still Watching Interest Rates
According to the latest statements, no clear schedule for a rate cut should be expected from the Fed in the short term. However, current economic indicators (such as PMI data) are increasing the possibility of a recession, so the likelihood of rate cuts beginning as of July still remains strong.
Calm for Now, But Summer Could Be Active
It has now become clear that Powell is not resigning, and that his speech did not contain any concrete message regarding monetary policy. However, statements from Fed members and market data point out that interest rate cuts could be taken more seriously starting from July. For now, the “wait-and-see” mode continues for the crypto markets and other risk assets.
