Federal Reserve’s Jefferson Evaluates Impact of Trump’s Trade Policies on Inflation – Coincu

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Key Points:

  • Federal Reserve Vice Chair assesses trade-related inflation impacts.
  • Inflation showing signs of stabilization, commodity prices rise.
  • Market remains cautious amid monetary policy evaluation.

Federal Reserve Vice Chair Philip Jefferson highlighted the need to evaluate Trump’s trade policies’ impact on inflation in a recent statement given on April 4.

This assessment is crucial as inflation is showing signs of stabilization, despite rising commodity prices linked to prior trade policies.

Federal Reserve Analyzes Trade Policy Influences on Inflation

Federal Reserve Vice Chair Philip Jefferson underscored the necessity of analyzing Trump’s trade policy effects on inflation. His comments emphasized that current monetary policies can adapt to economic uncertainties. Inflation stabilization is noted alongside rising commodity prices due to trade policies.

The impact of rising commodity prices partially results from tariffs enacted during the Trump administration. Despite this, Vice Chair Jefferson mentioned a potential offset from declining housing service prices, affecting overall inflation dynamics. “It is crucial to assess the comprehensive impact of Trump’s policy changes, especially in the context of rising trade-related inflation.” No immediate rush for policy rate adjustments was indicated.

Market reactions remained cautious following his comments. The cryptocurrency Fear and Greed Index dropped to “extreme fear,” with significant bearish sentiment evidenced by large purchases of Bitcoin put options, highlighting concerns about future price drops.

Bitcoin Trends and Market Prepares for Possible Shifts

Did you know? The dynamics of trade policies under Trump, including significant tariffs, have previously mirrored effects in the 1930s with widespread economic implications.

Bitcoin, trading at $81,724.78, holds a market cap of $1.62 trillion and dominates 61.96% of the market. Despite a trading volume spike to $50.63 billion, Bitcoin’s price dipped by 6.08% in 24 hours. The past two months reflect a 16.72% drop. (Data from CoinMarketCap)


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Bitcoin(BTC), daily chart, screenshot on CoinMarketCap at 16:58 UTC on April 3, 2025. Source: CoinMarketCap

The Coincu research team highlights the challenges of balancing monetary policy in light of trade-related inflationary pressures. They expect prolonged policy restraint aligning with stabilization efforts, while cautious market sentiment influences trading strategies.



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