Federal Reserve officials: The Fed will not be pressured to cut interest rates due to tariffs, inflation indicators are showing risks... Will a weaker dollar benefit Bitcoin?

Fed official Neel Kashkari sent hawkish signals in a recent speech, saying that while Trump's tariff plan, "much higher and broader than expected," could weaken investment and growth and push inflation higher in the short term, the Fed is unlikely to cut rates quickly under tariff pressure, even if the economy shows signs of weakness. (Synopsis: The whole line is rotten, what do Wall Street bigwigs think of Trump tariffs? (Background added: Arthur Hayes: If the US bond volatility MOVE index rises above 140, the Fed will be forced to cut interest rates and restart money printing) The recent massive tariffs imposed by US President Donald Trump are causing turmoil in financial markets around the world, all risk assets are under great pressure, and Wall Street institutions have warned that the risk of a global recession is rising. In this context, many analysts pointed out that high tariffs may further push up inflationary pressures, and in order to avoid the economy falling into recession, the US Federal Reserve (Fed) has previously predicted that the pace of interest rate cuts this year will slow down, but it may be forced to take interest rate cuts to stabilize the situation due to the tariff storm. Fed Kashkari: Fed will not cut interest rates easily However, in anticipation of the Fed's early rate cuts, Fed official Neel Kashkari recently sent hawkish signals, saying that while Trump's tariff plan is "much higher than expected and much wider" and could weaken investment and growth and push inflation higher in the short term, even if the economy shows signs of weakness, the Fed is unlikely to cut rates quickly under tariff pressure. In this regard, he explained: Due to the existence of tariffs, the threshold for adjusting interest rates has also been raised. Keeping long-term inflation expectations stable is critical, and tariffs could push up short-term inflation, meaning conditions for rate cuts are tougher even as unemployment rises. At the same time, he also pointed out that the recent inflation expectations indicators have begun to climb, combined with the high inflation experience of the United States in recent years, the Fed must prioritize ensuring that long-term inflation expectations do not get out of control, rather than rushing to stimulate the economy through interest rate cuts. It is not ruled out that the Fed will adopt a tighter monetary policy In addition, Alberto Musalem, another Fed official who has voting rights on interest rate decisions this year, also said yesterday (9) that US economic growth may fall sharply below the trend level. He made it clear that while his baseline forecast is not a recession, multiple factors could lead to slower growth. At the same time, the price increases brought about by tariffs may not be just short-term shocks. He stressed that if inflation expectations deviate from the Fed's 2% target and continue to rise, it will even force the Fed to adopt a tighter monetary policy, such as maintaining or raising interest rates, rather than the market had previously expected a rate cut. Bitwise Investment Chief: Bitcoin May Benefit from Tariff Storm The view of two officials that the Fed will not cut interest rates quickly in the short term will undoubtedly disappoint investors eager to cut rates to save the cryptocurrency market. However, it is worth mentioning that Matt Hougan, chief investment officer of Bitwise, recently analyzed the tariff storm from another angle, and he believes that the tariff itself may bring benefits to Bitcoin. Hougan first quoted Steve Miran, chairman of the White House Council of Economic Advisers, as saying this week that the Trump administration may be deliberately devaluing the dollar, even at the expense of its status as the world's sole reserve currency: Steve Miran, chairman of the White House Council of Economic Advisers, gave a speech on Monday focusing on the dollar's role as a reserve currency. Miran said the dollar's strong position suppresses U.S. manufacturing and distorts currency markets. The underlying hint is clear that the dollar needs to move lower. What I am most sure of is that the Trump administration may intend to devalue the dollar, even at the expense of its status as the world's sole reserve currency. Hougan pointed out that since 2020, the Bitcoin and Dollar Index (DXY) has generally shown a divergence, that is, when the dollar is lower, Bitcoin usually rises. He expects this pattern to continue, saying: In the long run, tariffs could accelerate the process of global de-dollarization and prompt countries to switch to hard currencies such as bitcoin and gold, which could play an important role in a more decentralized reserve currency system. In this case, the case with Bitcoin is simple: when international dynamics are challenging and global currencies are constantly changing, where else can investors go to find scarce, global assets that are not controlled by any government or entity? Related reports Fed Powell shouted "no urgent interest rate cut", the US economy is still strong; Trump responded: The action is too slow V God AMA highlights: Is Rollups good for Ethereum or is it blood-sucking? What is the ultimate narrative of ETH? 3.0 Progress ETH Successful Withdrawal! Ethereum Zhejiang testnet "successfully simulated" Shanghai's upgrade [Fed officials: Fed will not be forced to cut interest rates, inflation indicators are at risk... Will a lower dollar be good for Bitcoin? This article was first published in BlockTempo's "Dynamic Trend - The Most Influential Blockchain News Media".