Fed rate cut returns to market spotlight

• Trump presses Fed for immediate rate cut in 2025
• War and tariffs impact Fed's monetary decision
• Cryptocurrency market reacts to interest rate uncertainty

The Federal Reserve is preparing for its Federal Open Market Committee (FOMC) meeting on June 17-18 with a renewed focus on interest rates. While the latest inflation data showed a slowdown, the consumer price index (CPI) for May still came in at 2,4%, above the central bank’s 2% target.

According to Wall Street Journal chief economics correspondent Nick Timiraos, there was good reason to expect a rate cut as early as this week. However, former President Donald Trump’s tariff policy has added a new layer of uncertainty to the decision-making process.

In the first weeks of April, the cryptocurrency market felt the direct effects of these measures. The total value of the sector fell from $2,7 trillion to $2,4 trillion in just seven days, reflecting Trump’s increase in tariffs and the subsequent partial suspension of them, with the exception of China.

In addition to domestic pressures, the Federal Reserve also considers the impacts of international conflicts, such as the escalation of war in the Middle East, which could affect global economic stability.

Another factor weighing on the Fed's deliberations is Trump's hawkish stance, which has publicly pressured the central bank to cut interest rates. The situation places Jerome Powell in a delicate balance between meeting political expectations and maintaining economic stability.

The cryptocurrency market remains closely monitored as potential interest rate cuts tend to encourage capital inflows into riskier assets such as Bitcoin and other cryptos. Analysts note that the correlation between Fed moves and cryptocurrency volatility has been growing in recent months.

If there is a cut later this year, the sector could see a new wave of liquidity, increasing institutional interest and expanding the volume of trading in the digital market.