Fed Chair warns of 'uncertainties' as Trump’s tariff decision looms originally appeared on TheStreet.

On July 22, Federal Reserve Chair Jerome Powell responded to questions on President Donald Trump's tariffs, calling them "uncertain," noting that possible developments could significantly alter many aspects of the upcoming economic outlook. He reiterated that interest rate decisions are highly dependent on data.

At press time, Bitcoin, often sensitive to monetary policy signals, was trading at $119,415.89, up nearly 1% on the day, as per Kraken.

Speaking at the ECB's annual monetary policy conference in Sintra, Portugal, Powell emphasized that the FOMC will require more data before making any policy changes.

He remarked that, although inflation is moderating and the labor market remains strong, with unemployment at 4.2% and real wages rising, the FOMC needs "actual data" to be more confident that inflation will return to its 2% target on a sustainable basis.

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"That confidence would be building without tariffs," Powell said, indicating that the uncertain effects of tariffs throughout the supply chain make it uniquely challenging to forecast inflation. He also added that "The pass-through of tariffs to consumer inflation is very uncertain."

Powell reiterated that policy is "modestly restrictive" and that the Fed is watching how tariffs are affecting goods prices and core PCE inflation. He noted that it is essential to maintain humility in forecasting, given the high level of "economic uncertainty".

When asked about speculation related to leadership changes at the Fed, Powell emphasized that the Fed's monetary framework is a committee document and not attributable to any one person.

"It's not as if we're going to invent a completely new way to do things. It's been an evolving document. So it shouldn't depend on who the chair is at all. It should depend on what's happening in the economy and what the committee wants to do. So it isn't really tied to any particular chair. And, you know, we used to, we used to renew it every year. Now we do it every five years. So, but I don't think anybody, I've never heard anyone raise this issue that, you know, a new chair might want to come in and go in a completely different direction."

Tariff shocks have been known to create volatility in the crypto markets.

The crypto market cap declined from $2.74 trillion on Apr. 2 — when Trump announced tariff hikes — to $2.42 trillion on Apr. 8. As the president froze tariff hikes on all except China on Apr. 9, the market cap began recovering and neared the pre-Apr. 2 levels on Apr. 12 as it reached $2.71 trillion. Currently, it stands at $3.94 trillion.

Even Bitcoin declined from $85,000 on Apr. 2 to $76,000 on Apr. 8 due to the tariff shock but soon recovered to the previous level by Apr. 12. Now, it's trading well above $119,000.

The Fed is closely watching the impact of tariffs on the market and will take steps regarding rate adjustments accordingly. Crypto traders should look for the broader market signals to anticipate policy moves on the part of the Fed.

Fed Chair warns of 'uncertainties' as Trump’s tariff decision looms first appeared on TheStreet on Jul 22, 2025

This story was originally reported by TheStreet on Jul 22, 2025, where it first appeared.