Crypto Shrugs at Fed Minutes as Trump’s Tariffs Take Center Stage
Bitcoin and Ethereum traded flat on Wednesday after the Federal Reserve launched its July assembly minutes. Markets anticipated volatility, however the crypto market confirmed little response.
The Federal Open Market Committee (FOMC) left charges unchanged at 4.25%–4.5% in July. The minutes confirmed that Fed Governors Christopher Waller and Michelle Bowman dissented, preferring a 25 bps lower.
FOMC Minutes Fail to Transfer Crypto Markets
The Fed described inflation as “considerably elevated” and famous development had “moderated” within the first half of 2025. Officers reaffirmed the two% inflation goal and pledged flexibility if dangers emerge.
Markets had already priced in an 83% chance of a September rate cut. With no contemporary alerts within the minutes, crypto merchants noticed little motive to reprice threat. Consideration now shifts to Jerome Powell’s upcoming speech at Jackson Hole.
Nonetheless, the silence in crypto markets displays a much bigger shift. Merchants are watching Donald Trump’s escalating tariff measures, which now dominate inflation expectations.
Latest tariffs on semiconductors, electronics, and metal have raised costs for global producers. Sony, for instance, raised PlayStation costs by $50 after tariffs on Japanese electronics. Brazil and India additionally face US commerce penalties, fueling world tensions.
Tariffs complicate the Fed’s path. They add inflationary stress, but in addition weigh on development and exports. This leaves policymakers balancing two opposing forces—a lot tougher to handle than a regular financial slowdown.
Larger Image – Macro Collision Course
The conflict between US financial coverage and Trump’s commerce agenda units up a collision course. The Fed faces a dilemma: lower charges to assist slowing development, or maintain them excessive as tariffs push up costs. Both possibility dangers lacking one facet of its twin mandate.
For crypto markets, this uncertainty looms larger than the Fed’s cautious July statement. Buyers see commerce coverage because the wild card that might drive inflation greater, stress world development, and reshape safe-haven flows.
Till readability emerges, Bitcoin and Ethereum might stay range-bound, ready for the following decisive macro sign.
The publish Crypto Shrugs at Fed Minutes as Trump’s Tariffs Take Center Stage appeared first on BeInCrypto.
