U.S. Economy Shows Resilience Amid Restrictive Policies – Coincu

Key Points:

  • Resilient economic activity amid restrictive policies, according to Julius Baer’s economist.
  • Federal Reserve unlikely to cut rates soon.
  • Job growth remains strong, boosting private consumption.

The U.S. economy is showing resilience amid continuing restrictive policies, stated economist David Kohl from Swiss Bank Julius Baer on May 5. His analysis emphasizes sustained economic strength, which might delay interest rate cuts from the Federal Reserve.

David Kohl, the Chief Economist at Julius Baer, highlighted that the U.S. economy is sustaining strong growth despite volatile policies and high tariffs. He referenced the better-than-expected job additions and low unemployment rate following the April non-farm payrolls report, which is boosting private consumption. Kohl’s analysis suggests that the U.S. economy is robust enough to potentially prevent a near-term interest rate cut by the Federal Reserve.

U.S. Economic Resilience Amid High Tariffs and Job Growth

Market implications are significant as the lack of immediate rate cuts affects investment strategies across both traditional and cryptocurrency markets. Kohl pointed out the Federal Reserve’s focus on solid economic indicators, preferring to wait for signs of economic weakness before altering monetary policy. This approach impacts various market sectors and investment flows, with sustained economic strength lending short-term support to the U.S. dollar despite existing tariff-related risks.

Reactions from various stakeholders include a sense of confidence in the economy’s resilience. Market confidence remains steady due to continuous job growth, fueling consumer spending. Kohl’s stance reflects an anticipation of stability despite trade-related challenges.

The U.S. economy shows almost no signs of weakness. – David Kohl, Chief Economist, Bank Julius Baer

Cryptocurrency Market Insights Amid U.S. Economic Strength

Did you know? Swiss economist David Kohl predicted resilient U.S. economic activity could delay Federal Reserve rate cuts, a scenario echoing past strategies during tariff impositions.

According to CoinMarketCap, Ethereum (ETH) is priced at $1,826.73, with a market cap of $220.55 billion and a trading volume of $11.09 billion, reflecting a 37.08% change. Price changes over 90 days show a decline of 35.43%, while 7-day figures have improved by 3.00%.

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Ethereum(ETH), daily chart, screenshot on CoinMarketCap at 18:48 UTC on May 5, 2025. Source: CoinMarketCap

The Coincu research team provides insights indicating potential shifts in economic policy could impact interest rates and market performance. Historical data underscores the resilience of sectors tied to robust private consumption, reflecting sustained investment in financial and technological innovations.

Source: https://coincu.com/335825-us-economy-resilience-restrictive-policies/