Financial markets watch closely as the Federal Reserve signals caution on interest rate cuts. Amid growing pressure from political figures and segments of the financial community, the Fed remains hesitant to shift policy.
Levi Rietveld of Crypto Crusaders broke down this development in a recent video on X, emphasizing that Fed Chair Jerome Powell is holding firm, even as internal divisions within the Fed become more visible.
Rietveld pointed out that Powell made it clear the Fed is “well positioned to wait and see” when it comes to rate cuts. This is despite rising pressure from other Fed members and external forces, including Donald Trump. The Fed’s refusal to cut rates is particularly relevant for XRP, whose value proposition is increasingly tied to real-world utility rather than speculation.
Powell FREEZES Rates. XRP Just Got a MAJOR Boost! 🚀 pic.twitter.com/BpcKzqJDJc
— Levi | Crypto Crusaders (@LeviRietveld) June 25, 2025
Tariffs, Inflation, and the Policy Dilemma
A major point from Powell’s testimony was the impact of tariffs on inflation and economic growth. According to Powell, tariffs are “likely to push up inflation and weigh on the economy.” While inflation has eased, he stressed that it “remains somewhat elevated.” This directly supports the Fed’s decision to hold rates steady for now.
Rietveld explained that Powell’s stance means monetary policy will remain tight until clearer signals emerge. This has significant implications not just for traditional markets but also for digital assets, and many in the crypto space anticipated rate cuts and made bullish predictions for June.
Tighter U.S. monetary policy historically creates volatility for speculative assets, but for utility-driven assets like XRP, the long-term outlook becomes more favorable as the focus shifts to real-world use cases rather than speculative trading cycles.
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A Divided Federal Reserve
While Powell stays cautious, Rietveld noted that several Fed members are beginning to lean toward cutting rates sooner rather than later. The labor market remains strong, but inflation has not fallen to the Fed’s target.
The persistence of high rates tends to pressure risky assets broadly, but it also accelerates the institutional search for efficient payment solutions outside of traditional banking systems. This dynamic favors networks like the XRP Ledger (XRPL), and makes XRP an attractive investment, as it doesn’t depend on interest-rate-sensitive intermediaries.
Political Pressure Builds
Powell’s position comes despite growing pressure from Trump and others who have criticized the Fed’s unwillingness to lower rates. Still, Powell did not suggest that politics would influence the Fed’s decisions.
Regardless of political pressure, the Fed’s stance keeps institutional focus on lower-risk assets like XRP that solve real financial problems. Speaking on the potential outcome, Rietveld stated, “We’re going to be seeing incredibly soon,” capturing the tension that now surrounds the central bank’s next steps.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are advised to conduct thorough research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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