According to Cas Abbé, the latest FOMC meeting was less bullish than anticipated for markets. Chair Powell noted that while inflation has decreased notably, persistent concerns remain due to ongoing tariff wars, which could drive inflation higher in the future (source: Cas Abbé on Twitter, May 8, 2025). This cautious outlook from the Federal Reserve signals potential volatility and a lack of immediate bullish momentum for both traditional and crypto markets. Crypto traders should closely monitor inflation data and Fed statements, as sustained inflation concerns could delay potential rate cuts, impacting crypto price movements and liquidity.

According to The Kobeissi Letter, Fed Chair Jerome Powell stated that the Federal Reserve does not need to be 'in a hurry' to adjust interest rates, emphasizing a cautious 'wait and see' approach due to ongoing economic uncertainties (source: The Kobeissi Letter on Twitter, May 7, 2025). This signal of stable rates removes immediate pressure from risk assets, supporting current liquidity conditions. For cryptocurrency traders, this stance reduces near-term volatility linked to rate hikes and may sustain bullish sentiment in digital assets as investors seek alternative returns amidst a steady interest rate environment.