XRP Receives Major Boost With This Action From the Fed

The financial market is closely following as the Federal Reserve gives cautious signals about cutting down the whales. Amid increasing pressure from political figures and sectors of the financial community, the Fed remains hesitant to change its policy. Levi Rietveld of Crypto Crusaders analyzed this development in a recent video on X, emphasizing that Fed Chair Jerome Powell remains steadfast in his position, even as the internal divisions within the Fed become increasingly apparent. Rietveld pointed out that Powell made it clear that the Fed "is in a good position to wait and see" when it comes to cutting down the whales. This is despite increasing pressure from other Fed members and outside forces, including Donald Trump. The Fed's refusal to cut down the whales is particularly related to XRP, as its proposed value is increasingly tied to practical utility rather than speculation. Customs Duties, Inflation and the Dilemma of Policy A key point in Powell's testimony is the impact of tariffs on inflation and economic growth. According to Powell, tariffs "are likely to push inflation up and put pressure on the economy." Although inflation has eased, he emphasized that inflation "remains high." This directly supports the decision to keep the Fed's interest rates unchanged at this time. Rietveld explained that Powell's stance means that monetary policy will remain tight until clearer signals emerge. This is significant not only for traditional markets but also for digital assets, and many in the cryptocurrency space have predicted a cutting down the whales and made bullish predictions for June. The tighter monetary policy of the United States often creates volatility for speculative assets, but for utility assets like XRP, the long-term outlook becomes more favorable as the focus shifts to real use cases rather than speculative trading cycles. A Divided Federal Reserve While Powell remains cautious, Rietveld notes that some Fed members are starting to lean towards cutting down the whales earlier than expected. The labor market remains strong, but inflation has not yet fallen to the Fed's target. The existence of high interest rates tends to put pressure on risky assets in general, but it also drives the search for efficient payment solutions by organizations outside traditional banking systems. This move supports networks like XRP Ledger (XRPL) and makes XRP an attractive investment as it is not reliant on interest rate-sensitive intermediaries. Increasing Political Pressure Powell's stance comes despite increasing pressure from Trump and others criticizing the Fed for not wanting to cut interest rates. However, Powell did not imply that politics would affect the Fed's decision. Despite political pressure, the Fed's stance remains focused on lower-risk assets like XRP to address real financial issues. Speaking about potential outcomes, Rietveld stated, "We will see that soon," capturing the tension currently surrounding the central bank's next steps.