Powell pulled a double-move last night — tough on the outside, sneaky underneath.
He’s still sticking to his “no rate cuts until the labor market cracks” stance. Classic Powell… slow, steady, and annoyingly patient.
But here’s the real twist: QT is slowing down.
That’s basically a small liquidity faucet opening without touching interest rates. Quiet, subtle — and crypto noticed it instantly.
Inflation? Improving, but still sticky. Tariffs could push prices up again, but Powell basically said if it’s a one-off shock, he’ll ignore it. Translation: “Don’t freak out… yet.”
Meanwhile, the economy feels weird. Businesses are cautious, consumers are confused, and the markets are acting like they’ve had three espresso shots. Volatility isn’t going anywhere.
On the political side, Trump is going nuclear. Calling Powell “Mr. Too Late,” demanding he resign, and even threatening investigations. Rumors are swirling that Powell might actually step down before May 2026 — and every hit shakes stocks, bonds, and the dollar. If you think crypto stays untouched… good luck.
Here’s the bigger game:
Powell isn’t cutting rates, but slowing QT is quietly adding liquidity back into the system.
Retail traders may complain, but smart money loves it — the era of tight liquidity might be fading.
And that slowdown isn’t just a slowdown… it’s a signal.
Big players are already positioning. If Powell steps down and a rate-cut-friendly chair takes over, the next crypto bull run could be explosive.
