Federal Reserve Chair Jerome Powell has made it clear—there’s no immediate plan to ease monetary policy, despite market turmoil following President Donald Trump’s new tariffs. As stocks nosedived, Bitcoin (BTC) briefly surged but later settled below $83,000, maintaining a strong position compared to equities.

Powell Stands Firm Amid Market Chaos

Speaking at the Society for Advancing Business Editing and Writing Annual Conference, Powell refused to commit to an interest rate cut, stating the Fed is “well positioned to wait for greater clarity” before adjusting policy. While he acknowledged the unexpected scale of Trump’s tariffs, Powell stressed the need to prevent a temporary inflation spike from becoming long-term pain.

His cautious stance disappointed investors hoping for a dovish pivot, as stocks continued their downward spiral. The Nasdaq plunged another 4.2%, following a brutal 6% drop the previous day.

Bitcoin Outperforms Stocks Amid Rate Uncertainty

While traditional markets suffered, Bitcoin displayed relative resilience. The leading cryptocurrency briefly jumped ahead of Powell’s speech, reflecting hopes of looser monetary policy, before dipping back below $83,000—flat over 24 hours.

Bitcoin’s decentralised nature often makes it a hedge against economic uncertainty, but it remains sensitive to Fed policy shifts. If interest rates stay high, risk assets like BTC may struggle to gain traction.

Trump Demands a Rate Cut

Just minutes before Powell’s speech, Trump made his stance clear, pressuring the Fed to cut rates.

“This would be the perfect time for Fed Chairman Jerome Powell to cut interest rates,” Trump posted on Truth Social. He criticised Powell for acting too late in the past, urging him to “stop playing politics.”

Trump’s aggressive push for lower rates aligns with his pro-growth economic stance, but the Fed’s independence means Powell is unlikely to react to political pressure.

What’s Next for Bitcoin and the Markets?

With no immediate rate cuts on the table, investors will closely watch upcoming inflation data and Fed meetings. If inflation remains stubbornly high, Powell may hold firm on restrictive policy, potentially weighing on Bitcoin and stocks alike.

However, if economic conditions worsen, speculation about a future rate cut could fuel another BTC rally. For now, Bitcoin remains in a stronger position than equities, but uncertainty looms over its next major move.