#JuneRateCutForecast? # FederalReserve #CryptoNews

Recently, Chicago Fed President Goolsbee stated that the Federal Reserve may initiate interest rate cuts within the next 10 to 16 months. However, he also warned that the tariff policies proposed by the Trump administration could disrupt global supply chains and lead to the dreaded economic scenario of stagflation—where inflation and economic stagnation occur simultaneously.
Trump has recently proposed a 50% tariff on the European Union, triggering a noticeable plunge in both U.S. and European stock markets. Goolsbee openly warned that such high tariffs could ignite stagflation, something central banks are highly cautious of.
Meanwhile, despite continuous pressure from the President to lower interest rates, Federal Reserve Chairman Jerome Powell has maintained the Fed’s policy independence and emphasized that the Fed is legally prohibited from holding Bitcoin or any other crypto assets.
Currently, the total market cap of crypto is around $3.47 trillion, and the market is highly sensitive to interest rate decisions. When the Fed last cut rates in December 2024, Bitcoin dropped by 5% in a single day. During periods of stable policy, capital tends to shift into low-risk assets like government bonds.
If rate cuts happen next year, capital may once again flow into the crypto market. However, if a tariff war escalates and causes a delay in rate cuts, short-term volatility may be unavoidable.
This is essentially a tug-of-war between economic fundamentals and political will. Goolsbee’s “10–16 month” window aligns with the 2026 U.S. election cycle, implying that upcoming policy decisions may also be strategically driven.
For ordinary investors, rather than guessing the timing of a rate cut, it’s smarter to focus on the Federal Reserve’s September meeting—many analysts believe it could be a key turning point.
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