"Fed Forced to Cut Rates, Trump - Warren Apply Pressure: Will Powell Break the Market?"

Federal Reserve Chairman Jerome Powell is about to testify before Congress and the Senate, and the market is holding its breath. With Bitcoin dropping to $98.5k and altcoins struggling, crypto investors are looking for clues on interest rate cuts, inflation risks, and what's next for the economy. This comes at a critical time, when Powell is under intense political pressure and global tensions flare up. The financial world wants quick answers. Under pressure: Trump, Warren and Fed officials push for cuts Powell is facing pressure from both sides after the Fed decided to keep interest rates unchanged at 4.25%–4.5% in June. President Donald Trump criticized the Fed's cautious stance, calling it a mistake and asking for a deep 2–3% rate cut. Senator Elizabeth Warren and Fed Governors Michelle Bowman and Christopher Waller have also called for earlier cuts, possibly as early as July. According to CME FedWatch data, the probability of a rate cut in July is 23%, while the probability of a rate cut in September is much higher at 82%. Powell's testimony is expected to address the reasons why the Fed remains hesitant despite rising demand. Cryptocurrencies take a hit as tariff talk scares investors The cryptocurrency market is in a tough spot. Bitcoin has fallen to its lowest level in months, and altcoins are sinking deep in the red. Much of this stems from concerns about Trump's proposed trade tariffs, which have added to the instability of an already fragile economy. Powell is expected to talk about how these taxes could impact the Fed's decision. If he leans towards easing interest rates, cryptocurrency prices could rise again. But if he stays cautious, the US dollar could strengthen, and that usually means that digital assets will suffer more. Tensions in the Middle East Raise Inflation Fears Recent U.S. airstrikes on Iran have pushed oil and gold prices higher, raising new concerns about inflation. The ongoing conflict between Israel and Iran also increases the risk of closing the Strait of Hormuz, a crucial global shipping route. If that happens, fuel prices could skyrocket, making it harder for the Fed to achieve its inflation target. Powell's comments on these risks will be closely watched, as they could shape expectations for interest rate policy throughout the rest of 2025. Powell's Testimony Could Change the Market Powell's upcoming statements could be a turning point. Investors want to know - will he signal easing by cutting interest rates or continue to play it safe? Whatever he says, the outcome could shape the direction of the market for months to come, especially in the crypto sector.