{"id":841546,"date":"2025-04-17T09:11:28","date_gmt":"2025-04-17T14:11:28","guid":{"rendered":"https:\/\/newsycanuse.com\/index.php\/2025\/04\/17\/crypto-markets-slide-as-powell-flags-stagflation-risks-tariff-troubles-warns-of-tough-road-ahead\/"},"modified":"2025-04-17T09:11:28","modified_gmt":"2025-04-17T14:11:28","slug":"crypto-markets-slide-as-powell-flags-stagflation-risks-tariff-troubles-warns-of-tough-road-ahead","status":"publish","type":"post","link":"https:\/\/newsycanuse.com\/index.php\/2025\/04\/17\/crypto-markets-slide-as-powell-flags-stagflation-risks-tariff-troubles-warns-of-tough-road-ahead\/","title":{"rendered":"Crypto Markets Slide as Powell Flags Stagflation Risks, Tariff Troubles; Warns of Tough Road Ahead"},"content":{"rendered":"
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Crypto prices dropped after U.S. Federal Reserve Chair Jerome Powell warned that higher tariffs and rising prices<\/a> could slow down the economy. Speaking in Chicago, he said these changes might lead to stagflation, a mix of high inflation and low growth. Powell also talked about keeping the Fed independent from politics and pointed out how uncertain things are in the market right now<\/a>. However, his promising comments regarding crypto caught investors\u2019 sentiment.<\/p>\n

The market saw a decline on Wednesday after Jerome Powell gave a cautious outlook on the U.S. economy. Powell raised concerns about rising inflation, slower economic growth, and the impact of trade policies, especially President Donald Trump\u2019s proposed tariffs. His remarks led to uncertainty across financial markets, with crypto investors reacting quickly to the bearish tone.<\/p>\n

Discussing cryptocurrency<\/a>, Powell said crypto is becoming more mainstream and that a legal framework for stablecoins<\/a> is \u201ca good idea.\u201d He highlighted the need for consumer protections and hinted at some regulatory flexibility to allow innovation, but added it must be done carefully to avoid attacking the stability of the banking system.<\/p>\n

One of Powell\u2019s most concerning messages was about the growing impact of trade policies. He warned that tariffs introduced under Trump\u2019s administration are larger than previously forecasted, even beyond the Fed\u2019s worst-case estimates. These, he said, will likely drive prices up and slow economic growth.<\/p>\n

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Powell said<\/a>, \u201cThe effects of that are likely to move us away from our goals, so unemployment is likely to go up as the economy slows in all likelihood, and inflation is likely to go up as tariffs find their way into the economy.\u201d<\/p>\n<\/blockquote>\n

Regarding the government\u2019s debt, Powell described it as unsustainable over the long run, particularly because the U.S. is running large deficits even while the economy is at full employment.<\/p>\n

Fed Focuses on Innovation Amid Tough Road<\/h2>\n

Powell said that artificial intelligence could bring major changes to the economy, classifying it as more than just an improved search tool, comparing it to a more advanced version of a person. He noted that AI is one of the few developments likely to have a significant impact on the economy, though he acknowledged that it\u2019s still unclear how these changes will unfold.<\/p>\n

In a nod to potential challenges ahead, Powell said the Fed may face a situation where its two main goals: stable prices and full employment, come into conflict. If so, the central bank could be forced into making \u201ca difficult judgment.\u201d<\/p>\n

Lastly, he addressed the Fed\u2019s readiness to support global markets, saying it stands prepared to provide dollar liquidity via swap lines with other central banks. \u201cWe want to make sure that dollars are available,\u201d Powell said.<\/p>\n

Overall, the negative outlook on the economy caused Bitcoin and major altcoins to drop by nearly 2%. However, the market has started to bounce back after Powell\u2019s comments about crypto innovation.<\/p>\n

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Never Miss a Beat in the Crypto World!<\/h5>\n

Stay ahead with breaking news, expert analysis, and real-time updates on the latest trends in Bitcoin, altcoins, DeFi, NFTs, and more.<\/p>\n<\/div>\n<\/div>\n

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\n Shayan Chowdhury<\/p>\n","protected":false},"excerpt":{"rendered":"

Crypto prices dropped after U.S. Federal Reserve Chair Jerome Powell warned that higher tariffs and rising prices could slow down the economy. Speaking in Chicago, he said these changes might lead to stagflation, a mix of high inflation and low growth. Powell also talked about keeping the Fed independent from politics and pointed out how<\/p>\n","protected":false},"author":1,"featured_media":841547,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[22791,386],"tags":[],"class_list":["post-841546","post","type-post","status-publish","format-standard","has-post-thumbnail","category-crypto","category-markets"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/841546","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/comments?post=841546"}],"version-history":[{"count":0,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/841546\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media\/841547"}],"wp:attachment":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media?parent=841546"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/categories?post=841546"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/tags?post=841546"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}