#BitcoinBouncesBack

Wash’s First Meeting: “Bad News” for Trump and Risk Assets 📉

Today, Kevin Wash officially became the Chair of the Federal Reserve. Trump encouraged him with the phrase: “Don’t look at me, don’t look at anyone—just do your job.” But just a few hours later, Wash will likely have to bring the president not at all the “good news” he expects.

⚡ Market Expectations:
Wash’s first meeting under his leadership is likely to end with interest rates kept unchanged. Yes, Trump publicly pushes for lower borrowing costs, but economic realities point in the opposite direction.

📊 What prevents a rate cut?
Chief Economist at Comerica Bank, Bill Adams, explained that the Fed needs either new shocks to the labor market (an escalation in the Middle East or a negative impact of AI on employment) or a clear cooling of inflation. But for now:

· employment has been growing for 3 consecutive months,
· inflationary pressure due to the Iranian conflict remains high.

🔮 A Surprise for Traders:
In recent weeks, sentiment has changed drastically—from expecting an early rate cut to a possible increase by the end of 2026—early 2027. This is a turnaround that markets haven’t fully processed yet.

💡 How does this affect us (crypto and stocks)?
If rates stay high and could even rise, that’s the traditional “bearish” backdrop for risk assets. However, if the market is already pricing in a tough scenario, and the Fed suddenly gives a dovish hint, we could see a sharp surge in volatility. BTC is already showing positive momentum amid falling oil prices, but tomorrow’s Wash rhetoric could flip everything.

🗣 Your Take:
Will Wash be able to maintain independence under pressure from Trump? Or will we see an unexpected move? Share your thoughts in the comments!

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