Global warning sign? Fed under pressure to cut rates after market turmoil

• Fed under pressure.
• Interest rate cut imminent?
• Volatility in the markets.

Amid growing apprehension in global financial markets, fueled by recent tariff policies and fears of a sharp economic slowdown, the US Federal Reserve (Fed) finds itself under intense pressure to adopt significant monetary measures.

Analysts and market operators are speculating that the Fed could intervene early, with an interest rate cut and a liquidity injection into the financial system, possibly as early as today, ahead of the formal meeting scheduled for May 7. Current expectations among experts point to possible interest rate cuts of up to 125 basis points by the end of the year, with a 40% probability of a reduction in the coming days.

The recent imposition of new trade tariffs by US President Donald Trump has been blamed as a catalyst for a widespread sell-off in the sector and a panicked move in the bond market, resulting in a dramatic drop in yields.

Bob Michele, global head of fixed income at JPMorgan Asset Management, in statements In recent interviews with Bloomberg, he expressed concern that both the White House and the Federal Reserve appear to be underestimating the severity of the market moves. Michele emphasized the urgency of a response from the Fed, arguing that waiting for a potential financial system crash would be a risky strategy.

“They are behaving as if the market movements are not normal,” he said. “We cannot believe that the Fed will wait until something breaks before responding.”

This Monday, the Cryptocurrency markets are down today , represented mainly by Bitcoin and Ether, faced a strong devaluation. Following the negative movement of the Asian stock markets, both cryptocurrencies extended their losses, a phenomenon that reflects the increase in trade tensions led by President Donald Trump.

Bitcoin price Today retreated to the level of US$ 74 thousand this Monday. The movement marks the lowest price of the cryptocurrency in about five months. At the time of publication, the price of Bitcoin was quoted at US$ 79.127,70 with a drop of 4% in the last 24 hours.