In brief
- Bitcoin’s price fell on Wednesday, while altcoins were hit harder.
- Trump called Powell “stupid,” as the Fed is expected to hold interest rates steady.
- Iran’s supreme leader said the U.S. would face “irreparable damage” if it joins a growing conflict in the Middle East alongside Israel.
The price of Bitcoin fell on Wednesday as U.S. President Donald Trump critiqued Federal Reserve Chair Jerome Powell amid flaring tensions in the Middle East.
From the White House, Trump called Powell “stupid,” arguing that the U.S. central bank “probably won’t cut [interest rates] today,” despite “no inflation” from tariffs.
Bitcoin was recently changing hands around $104,800, a 0.8% decrease over the past day, according to crypto data provider CoinGecko. Altcoins fell harder, with Solana and XRP dropping 3.2% to $146 and 3.1% to $2.15, respectively.
The Fed is expected to hold interest rates steady for a fourth straight meeting on Wednesday, with 99.9% of Fed futures traders siding with the president, according to CME FedWatch.
Although Trump has repeatedly called on Powell to lower rates, the U.S. central bank has been in a wait-and-see mode, as it tries to assess how Trump’s on-again, off-again approach to tariffs could potentially lead to higher prices and slower economic growth. Trump’s immigration policy could also make taming inflation more challenging, Fed policymakers posited in December.
Alongside the Fed’s expected pause, holding its benchmark rate at a target range of 4.25% to 4.5%, the U.S. central bank is expected to release a new set of quarterly economic projections. In March, Fed policymakers projected two quarter-percentage-point reductions this year. The Fed’s projections will also cover key indicators like inflation and the unemployment rate.
Marcin Kazmierczak, co-founder and COO of modular blockchain oracle Redstone, told Decrypt that Powell’s post-decision press conference could contain linguistic pivots. If Powell highlights “cumulative tightening effects,” that would be dovish and a subtle acknowledgement that there’s a lag between policy actions and the economic effect, Kazmierczak said.
Meanwhile, Iranian Supreme Leader Ayatollah Ali Khamenei warned that the U.S. will face “irreparable damage” if the country enters a growing conflict in the Middle East alongside Israel, per CNBC.
Khamenei’s warning follows Trump’s threat on Tuesday that the Iranian supreme leader is an “easy target,” while calling for Iran’s unconditional surrender.
Edited by James Rubin
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