According to The Kobeissi Letter, recent statements by Powell regarding the economic impact of tariffs have raised significant concerns within the trading community. Powell indicated that the economic impact of tariffs would be larger than expected, leading to high inflation and slower economic growth. This announcement has caused traders to reassess their positions, with potential implications for cryptocurrency markets as investors seek inflation hedges. Such developments could increase volatility in Bitcoin and other digital assets as traders look for safe havens amid economic uncertainty.

According to The Kobeissi Letter, mentions of 'stagflation' in Bloomberg News have surged to approximately 1,500 in recent weeks, marking the highest level since May 2024. This indicates rising concerns about stagflation, which is characterized by persistent high inflation, slow economic growth, and elevated unemployment. Traders should be aware of potential market impacts, as stagflation could influence central bank policies and investor sentiment.

According to The Kobeissi Letter, consumer confidence is plummeting due to high inflation and tariffs, with a record high share of consumers believing that business conditions are worsening. This sentiment is approximately 15 percentage points higher than during the 2008 financial crisis, indicating significant economic concern which could impact market trends and consumer spending, essential factors for traders to consider.