As if the explosion of a speculative bubble in Memecoins was not enough to send cryptography markets in recent weeks, a general risk of feeling in traditional finances adds to pressure.
Perhaps in a speculative bubble in themselves, the main averages of the US Stock Market. UU. They have retired quickly in recent times, caused by a series of tariff threats by President Trump. No more threats, 25% of the encumbrances against the goods of Mexico and Canada entered into force today, among additional taxes on Chinese products.
Falling another 2.6% yesterday and went down in early action on Tuesday, Nasdaq is now below the level before Trump won the elections in November.
Bad news bring lower rates
“We are determined to reduce interest rates,” said Treasury Secretary Scott Besent, in an interview with Fox News on Tuesday morning.
In fact, 10 -year treasure yield is currently 4.13% versus 4.80% just before Trump’s inauguration six weeks ago.
At the short end of the curve, markets are dramatically reproduction expectations for Fed rates cuts in 2025. The probabilities of at least one reduction of rates by the May meeting of the Fed have increased to 47% versus only 26% a week ago, according to the CME Fedwatch tool. The possibilities of two or more rates cuts for the June meeting have increased to 36% from 15% a week ago.
Crypto Daybook Americas He referred to possible tariff cuts that could help lift depressed cryptography prices, although the economy is far from being a return to quantitative flexibility.
While lower rates may seem an easy solution, the challenge lies in balancing inflation, which is currently 3% year after year after four consecutive months of increases. The last time the main inflation was in the objective of 2% of the Fed or below the Fed was in February 2021.
The Federal Reserve must navigate a delicate balance, relieveing rates to help keep the economy out of the recession without further push inflation.
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