- The crypto market is down.
- Major Wall Street indexes have declined.
- The US Fed rate remains steady for the second consecutive time.
The crypto market has ended the day on a lower note. Mirroring the sentiment is Wall Street, with all three major stock indexes down. A possible factor is the US Fed rate, which has been left unchanged for the second time. In fact, it may only be changed once in 2026. Meanwhile, Jerome Powell has claimed that US President Donald Trump is stuck with him for a while.
Crypto Market and Wall Street
The crypto market, which ignited optimism across the community, has once again brought the clouds of uncertainty. Collective pointers are down, and, needless to say, so are individual top cryptocurrencies.
There is little to confirm what caused the correction, given any micro or macro factor could have triggered the downtrend. However, the recent development on rate cuts stands out at the moment. That has also taken down Dow, Nasdaq, and S&P 500.
All three indexes have declined by 1.63%, 1.46%, and 1.36%, applicable in the same order. Another aspect could be the rising price of Brent and Crude oil, with the former breaching the $111 mark and the latter aiming to sustain a $90+ level.
Call on Rate Cut
The US Fed has decided to keep the level steady for the second time in 2026. And, it is likely to slash the rate only once this year. It could be by 25 basis points, with no certainty on the timeline. Authorities are reportedly attempting to draw a balance between growth and inflation.
The target rate is 2%. It previously turned out to be 2.4% for February 2026 – second consecutive time. It is estimated that the inflation rate could see an increase in the next report because oil prices have skyrocketed. A prolonged conflict in the Middle East could further put tensions on consumers.
Authorities are likely to extend the pause on rate cuts for a while. The range, till then, remains 3.50% and 3.75%.
Powell and Trump
The crypto market and Wall Street have reacted to developments on steady rates. On the sidelines, Jerome Powell has said that he would stay in office till the Department of Justice has concluded the criminal investigation. This has delayed the confirmation for Kevin Warsh, who has been pointed out as the next Federal Reserve Chair.
Interestingly, Warsh was seen as a candidate in favor of cutting rates in line with Trump’s wish. Powell has sought transparency and finality in the investigation.
Highlighted Crypto News Today:
Crypto Prices Retreat, Asian Markets Move the Same Way
Source: https://thenewscrypto.com/crypto-market-and-wall-street-end-sharply-lower-with-steady-us-fed-rate/
