In April, President Trump criticized the Federal Reserve (Fed) over its handling of interest rates. Now, he’s calling for an emergency rate cut to address rising economic uncertainty. This pressure on the Fed comes as recent inflation data indicates a potential need for action. Experts like Bob Michael from J.P. Morgan Asset Management suggest that a swift rate cut may be necessary due to the unprecedented financial market collapse recently observed in the US, which poses significant risks to the global economy. He highlights the high import tariffs introduced by President Trump as a key contributing factor, impacting trade deals and potentially hindering economic growth. The Fed, while prepared to intervene if needed, faces a difficult decision given recent market instability and their reluctance to make drastic moves before the May 7th FOMC meeting. Susan Collins of the Boston Federal Reserve Bank, one of the 12 members voting on interest rate decisions, acknowledges the Fed’s willingness to utilize various tools to support markets but emphasizes a measured approach only when necessary. However, questions linger regarding the Fed’s swiftness and preparedness to address these issues. The influence of global liquidity is also being analyzed, particularly in relation to Bitcoin, as recent research indicates a significant correlation between dollar liquidity and Bitcoin price movements. The impact on cryptocurrency market stability could be significant, with experts like Lin Alden highlighting Bitcoin’s role as a barometer for global money supply, further amplified by the SEC’s evolving stance towards crypto regulation. This shift from a stricter approach under Gary Gensler creates a more supportive environment for the industry’s development. The U.S. regulatory landscape for cryptocurrencies is also in flux. Recent SEC roundtables have focused on navigating the challenges of regulating cryptocurrency, highlighting a potential departure from previous administrations’ stances. Acting Chairman Mark Uyeda emphasizes temporary exemptions to regulations for registered and unregistered participants as a tool for fostering innovation while awaiting long-term solutions. This suggests a more collaborative approach compared to the past, with the aim of supporting industry growth without stifling it. The ongoing uncertainty surrounding cryptocurrency regulation underscores the need for stability in the market, creating conditions that could attract investors in the near future.