As if the bursting of a speculative bubble in the same was not enough to send cryptographic markets tumbling in recent weeks, a general risk of feeling of traditional financing adds to pressure.
Perhaps in a speculative bubble themselves, the main American market average has been in recent retirement lately, triggered by a series of pricing threats from President Trump. The threats no longer, 25% of samples against the goods of Mexico and Canada have entered into force today, among the additional taxes on Chinese products.
As an additional 2.6% fall yesterday and down at the start of action on Tuesday, the Nasdaq is now below the level in which it was before Trump won the election in November.
Bad news cause lower prices
“We are ready to reduce interest rates,” the Treasury Secretary Scott Bessent in an interview with Fox News said on Tuesday morning.
Indeed, the yield of the treasury at 10 years is currently 4.13% against 4.80% just before the inauguration of Trump six weeks ago.
At the short end of the curve, the markets considerably reproduce expectations for Fed rate reductions in 2025. The chances of at least a drop in rate by the Fed May’s meeting rose to 47% against only 26% a week ago, according to the Fedwatch CME tool. The chances of two or more rate drops by the June meeting increased to 36% against 15% a week ago.
Crypto Daybook America Alludes to drops in potential rate which could help increase the depressed prices of cryptography, although the economy remains far from a return to quantitative relaxation.
Although the lower rates may seem to be an easy solution, the challenge lies in the balance of inflation, which is currently 3% in annual sliding after four consecutive months of increase. The last time the inflation of the titles was or below the target target of the Fed was back in February 2021.
The federal reserve must navigate in a delicate balance – the softening of rates to help keep the economy outside the recession without pushing even higher inflation.
Non-liability clause: Parties of this article were generated with the help of AI tools and examined by our editorial team to ensure accuracy and membership of our standards. For more information, see the complete Coindesk AI policy.
