Neel Kashkari Highlights Trade Policy Uncertainty for Fed – Coincu

Neel Kashkari, President of the Minneapolis Federal Reserve, noted uncertainty in U.S. trade policies affecting rate decisions on May 26, 2025, during a televised discussion.

This uncertainty may influence Federal Reserve rates, affecting crypto markets; institutional investors watch for signs of shifts due to policy.

Fed’s Rate Decisions Tied to Trade Policy Influence

Neel Kashkari, President and CEO of the Federal Reserve Bank of Minneapolis, expressed concerns about the influence of U.S. trade and immigration policies on the Federal Reserve’s ability to adjust rates before September. His remarks were part of a broader discourse on economic policy and its implications.

Changes in trade policies could delay the Federal Reserve’s rate decisions, heightening market uncertainty. Shifts in monetary policy affect liquidity and inflation predictions, critical components for financial and digital assets’ outlooks.

“Nervous that inflation expectations may lose their anchor to 2% target”—reflecting on the risks posed by trade policy and tariffs to the Fed’s inflation objectives.

Bitcoin’s Resilience Amid Fed Uncertainty and Market Trends

Did you know?
In 2018, similar uncertainties concerning U.S.-China tariffs led to volatility in both traditional and crypto markets, demonstrating how macroeconomic policies can impact asset prices.

Bitcoin (BTC) holds a market cap of $2.17 trillion with a price of $109,063.19, according to CoinMarketCap as of May 26, 2025. The cryptocurrency has risen by 1.62% in the past 24 hours and 15.59% over the past month, marking steady growth amid market uncertainties.

Coincu research analysts highlight that ongoing Fed policy ambiguities could steer technology narratives towards non-sovereign assets like Bitcoin. This scenario emphasizes the role of non-traditional assets in diversifying risks amid economic and policy shifts.