šŗšø WHAT DID POWELL REALLY SAY?
Federal Reserve Chair Jerome Powell has openly blamed Trump-era tariffs as a key driver behind recent inflation spikes ā not just loose monetary policy.
ā ļø This is BIG.
For years, inflation was framed as a ārate problem.ā
Now? Trade policy is back in the spotlight.
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š THE FEDāS POSITION (READ CAREFULLY š)
While inflation continues to overshoot the Fedās 2% target, Powell emphasized:
š¹ Tariffs are pushing prices higher across supply chains
š¹ The impact is temporary ā but VERY real
š¹ Inflation isnāt solely the Fedās fault
š¹ Rate cuts are happening, but cautiously
š” December Move:
š Fed cut rates to 3.5%ā3.75%
Butā¦
šØ DISSENT REMAINS
Several Fed officials voted against further easing, warning that inflation pressure hasnāt fully cooled yet.
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āļø WHY THIS MATTERS
Tariffs = higher import costs
Higher costs = higher consumer prices
Higher prices = sticky inflation
Even if demand cools, policy-driven inflation doesnāt disappear overnight.
Thatās why the Fed is walking a tightrope š§µāļø
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š MARKET REACTION: RISK-OFF MODE
Crypto didnāt like the uncertainty.
š» $BNB ā DOWN
š» $AVAX ā DOWN
š» $MATIC ā DOWN
Why?
Because markets hate one thing more than bad newsā¦
š UNCERTAINTY
Will inflation fade naturally?
Will rates pause?
Or will the Fed be forced to stay restrictive longer? š¬
š WHAT MARKETS ARE WATCHING NOW
š Upcoming CPI & PCE data
š Any rollback or expansion of tariffs
š Fed language ā ātemporaryā vs āpersistentā
š Timing of the next rate cut
One hot inflation print could flip the entire narrative overnight. ā”
š§ BIG PICTURE TAKEAWAY
š„ Inflation is no longer just a money-printing story
š„ Trade policy is back as a macro weapon
š„ The Fed is divided
š„ Markets are nervous
This is the kind of environment where: š Smart money positions early
šØ Weak hands panic
š Volatility creates opportunity
