Analysis: Market focuses on Powell's speech this week, interest rate cut expectations and global recession risks remain in focus

Research analyst Carlos Guzman from crypto market maker GSR stated that market participants will closely watch Federal Reserve Chairman Powell's speech this week. They are eager to understand the Fed's stance on potential recession. He said, "When the tariff policy suspension was announced, people's primary concern was that it might lead to a large-scale economic contraction. At that time, the market expected four rate cuts this year." After Trump announced a 90-day pause on most tariffs last week, recession expectations decreased, and rate cut expectations weakened accordingly. However, Guzman mentioned that the market still expects more rate cuts than before Trump's tariff policy suspension. He stated: "If the global economic situation looks bad, the Federal Reserve might adopt more stimulus policies. This could be a medium-term positive for cryptocurrencies, although the impact might be limited in the short term due to recent volatility." (Decrypt)