Powell Stands Firm on Inflation, Markets Slide as Tariff Concerns Resurface

Federal Reserve Chair Jerome Powell maintained a firm stance on inflation risks during Wednesday’s post-meeting press conference, warning that the Trump administration’s tariff policies could exert renewed upward pressure on prices.

“Increased tariffs are pushing up prices,” Powell said. “Near-term measures of inflation expectations have moved up.”

Despite the Fed’s decision to keep the benchmark interest rate unchanged at 4.25%–4.5%, Powell’s remarks suggested a willingness to tighten policy further if inflation shows signs of reaccelerating. “You could say,” Powell added, “the Fed is looking through inflation by not hiking [rates].”

Markets reacted swiftly to the tone of the comments. Bitcoin (BTC) dropped nearly 2% to $115,800 following the press conference, while major U.S. equity indices reversed earlier gains to post modest losses. The impact on altcoins was more pronounced, with ether (ETH), solana (SOL), and XRP each falling around 4%.

While the decision to hold rates was widely expected, dissent from Governors Michelle Bowman and Christopher Waller—who advocated for a 25-basis-point rate cut—highlighted emerging division within the central bank. Still, Powell offered no indication of a policy shift, despite mounting political pressure from President Trump and internal calls for easing.

For now, Powell’s message remains clear: the Fed isn’t ready to pivot until inflation risks, particularly those amplified by trade policy, are under control.