Economists around the world fear that the so-called “liberation day” could lead to a recession that “may take a strong stolen much of the world’s economy” as more than $5 trillion has been wiped out from the global stock market since Trump’s tariffs were announced on April 2.
Panicked by the fierce market response, the president on Friday called Federal Reserve Chairman Jerome Powell to cut interest rates, calling it “the perfect time” on his true social platform. However, Powell prefers to remain steady, predicting an increase and growth from aggressive tariff policies.
As Powell pointed out, tariffs are likely to cause a temporary surge in inflation, making them more permanent and premature to adjust monetary policy without a clearer economic signal.
Some critics (including Trump) have argued that Powell is too cautious and could miss the window due to timely rate cuts. Trump’s same truth social post said:
“He (Jerome Powell) is always ‘slow’, but he now changes his image and soon… he cuts interest rates, cuts Jerome, stops politics! ”
However, Powell emphasizes that the Fed is not in a hurry and prefers to wait for a clearer economic signal before making policy adjustments. This cautious approach is driven by concerns about inflation. This is a persistent issue that appears to have been exacerbated by tariffs.
Despite Trump’s immediate demand for action, Powell is focusing on maintaining inflation stability. A stance that could disappoint investors who want quick interest rate cuts.
As a market tank, bitcoin appears as a hedge
Many are turning to Bitcoin as the world is plagued by thread in anticipation of tariff negotiations, retaliation or interest rate cuts to avoid potential economic Armageddon.
The Dow Jones industrial average bleed over 2,200 points on Friday, adding to the previous day’s 1,679 points decline, showing the worst two-day performance in history, with the Nasdaq and S&P 500 experiencing their worst drop since Covid. Bitcoin, meanwhile, barely fluctuating, held steadily at around $83,000, with a small profit at the time of writing.
Rajat Soni, CFA charter holder and Bitcoin and financial analyst, commented:
“The S&P 500 has lost all returns since March 2024. Bitcoin has grown by around 30% over the same time.”
Tether CEO Paolo Aldoino simply said, “Bitcoin is a hedge.”
In a video post, Joe Burnett, Market Research Director for Crypto Financial Firm at Crypto Financial Firm Unchained, said:
“Trump tariffs are here, US stocks are crashing, and China is retaliating. Now it may be one of the best times to establish a meaningful Bitcoin position. Not financial advice.”
When reporting 3:24pm, UTC on April 5, 2025Bitcoin ranks number one in terms of market capitalization, and prices have fallen. 0.32% Over the past 24 hours. Bitcoin’s market capitalization is $1.64 trillion, with 24-hour trading volume of $267.5 billion. Learn more about Bitcoin›
When reporting 3:24pm, UTC on April 5, 2025the Crypto market totals $2.65 trillion, with a 24-hour volume of $680.9 billion. Bitcoin’s advantage is currently 61.90%. Crypto Market Details›
It is mentioned in this article
