Inflation Data Offers Hope for Fed Policy Shift Amid Limited Tariff Impact

Federal Reserve data suggests inflation remains favorable, with tariffs proving to have minimal effect on the economy. This positive trend, reported by Xinhua Finance on June 3, 2025, could signal a potential shift in monetary policy and influence financial markets’ outlook. Federal Reserve official Guersbey has highlighted this economic development, anticipating changes in policy ahead of the upcoming FOMC meeting. He emphasized that the current inflation data continues to be favorable and that tariffs are not significantly impacting the economy. The anticipated policy shift is expected to provide opportunities for adjusting interest rates during the June 17-18 FOMC meeting. Financial markets react with cautious optimism, anticipating potential easing of monetary policies. These developments have sparked market reactions from key players and analysts, including Mihir, Macro Analyst on Twitter: ‘With March’s core PCE inflation holding steady at 2.5%, this moderate inflation level could give the Fed room to lower rates, aiming to avoid a potential recession,’ he suggests. This optimism is reflected in speculative investments, particularly in Bitcoin and Ethereum, which are seeing an increase in crypto investment as market players anticipate policy changes. Bitcoin’s price stands at $104,437.11 with a 23.6% increase over the last 90 days, showcasing its dominance in the market with 63.44%. The Fed has historically used rate cuts as signals for potential Bitcoin rallies, further strengthening its narrative as digital gold. The study by Coincu research indicates that closing supervisory gaps may contribute to increased institutional crypto adoption. These findings highlight how monetary policy shifts could significantly influence technology adoption and broader economic landscapes.