The post If the Fed prints more money, what’s at stake for Bitcoin? appeared on BitcoinEthereumNews.com.

When Federal Reserve official Neel Kashkari appeared on CNBC and said the Fed has “tools to provide more liquidity to the market,” Crypto X instantly interpreted this statement as a vow to print dollars. If it happens, what are the implications for Bitcoin? It is not clear if the Fed will use its tools to add liquidity to the market. Agency officials continue to reinforce the idea that they are not in a hurry to take any action regarding the ongoing tariff chaos. The Fed wants to see the results of negotiations between the U.S. and other countries, Kashkari says. Yet, the Fed is satisfied with the improving CPI inflation rate (in March, it reached 2.4%) and will not prioritize any other task before it fulfills its mission of bringing inflation to a 2% rate. For the first time in five years, prices saw a monthly drop of 0.1%. The Fed will likely deflect from cutting interest rates to keep pushing inflation down, while Trump hopes that the Fed will cut the rates to help the markets. Many experts agree that Trump wants to weaken the dollar to boost exports and offset the trade deficit. Kashkari doesn’t see the trade deficit as something extraordinary for the U.S. The disagreement on the interest rate led to a slow-burning conflict between Trump and the Fed Chair, Jerome Powell. Reportedly, Trump seeks to terminate Powell through the Supreme Court before his term ends. The U.S. president can’t fire the Federal Reserve Chair without cause. Will the Fed add liquidity to the markets? The short answer is “not yet.” Kashkari said the Fed has the tools to provide liquidity, but he noted that the agency won’t intervene until it is clear that the market cannot correct itself. And the 90-day pause on tariffs doesn’t…

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Filed under: News - @ April 12, 2025 3:22 pm