Powell Defers 2025 Rate Cut Guidance Amid Market Uncertainty

Federal Reserve Chair Jerome Powell’s recent May 8 meeting left the market speculating on future rate cuts. Despite market expectations for three rate reductions by year-end, Powell remained hesitant to commit to a specific timeline for such adjustments in 2025. This cautious stance sparked immediate volatility in both crypto markets and stock indices. Bitcoin and Ethereum witnessed significant price fluctuations following his announcement, while the S&P 500 saw minor gains reflecting broader market response.