Earlier this week, Fed Governor Christopher Waller said inflation is still too high, so more rate cuts may be necessary.
While FedWatch sets the probability of the next rate cut happening on March 19 as just 2.5%, Trump’s tariff war could change the odds.
For the crypto market, this means one thing–the bull run is closer than it seems.
Let’s unpack the impact of Trump’s new economic policy.
Waller’s Disinflation Hopes Meet Trump’s Aggressive Tariff Reality
The Federal Open Market Committee (FOMC) kept interest rates steady in January, and analysts expected the next meeting on March 19 to maintain this hawkish stance.
However, Trump’s aggressive tariff proposals have introduced new economic uncertainties.
The US President plans to slap 25% tariffs on semiconductors, cars, and pharmaceuticals. The net effect will be price hikes on the consumer end, as even US-based manufacturers rely heavily on imported components.
The Fed warned Trump of this scenario in January and pointed out it would worsen inflation, which means the committee might announce a rate cut sooner.
Lower interest rates decrease returns on safe-haven assets like bonds and increase investor risk appetite. As a result, they flock to high-risk, high-reward investments like crypto, namely, meme coins on presale and low-cap altcoins.
It’s worth noting that Waller didn’t give much weight to Trump’s tariffs in his latest speech on disinflation progress. But that was before Trump upped his tariff game, so the effect may be more pronounced and persistent than Waller hopes.
Meme Index ($MEMEX) Brings TradFi Strategies to Crypto
More traditional, risk-averse entering the crypto market could push the capitalization of altcoins and meme coins to new heights.
However, navigating the meme coin sector isn’t easy, particularly if you’re relatively new to crypto or fear losses.
Meme Index ($MEMEX) blends traditional investment vehicles with degen spirit, presenting the world’s first meme coin index to help newcomers manage risk.
You can pick from four meme coin baskets ranging from low volatility (the Titan index, featuring established crypto like $DOGE) to extreme (the Frenzy index, focusing on low-cap coins like $DEGEN).
By allocating funds across eight tokens instead of one, you spread risk and smooth out price swings, ultimately generating higher returns in the long run.
The multi-tier system provides a natural progression path for investors. You can start with the lower-risk Titan index, then explore higher-risk indexes as your confidence grows. Alongside your profits, hopefully.
Besides, there’s no need to constantly monitor your portfolio, which helps prevent panic selling during dips and FOMO buying during peaks.
$MEMEX Token Price to Rise Soon, Analysts Are Bullish
The $MEMEX token presale has already gained significant traction, with $3.7M raised. The next price uptick will happen in less than 24 hours, so now is the last chance to secure your share of $MEMEX at $0.0163585.
Beyond access to the four indexes, $MEMEX gives its holders governance rights.
The community can vote on development proposals and decide which tokens to include in a particular index.
After the $MEMEX presale ends and the token launches on exchanges, it could hit $0.074, a 352% increase from the current price.
Early birds might secure even greater profits thanks to the 604% staking APY, which will decrease as the staking pool expands.
Rate Cut or Hold?
While Waller maintains his cautious stance on rate cuts, Trump’s aggressive tariff proposals could force the Fed’s hand sooner than expected.
Whether through established altcoins or new cryptocurrency like Meme Index, investors seeking shelter from traditional market uncertainty might find opportunities in the crypto sector.
However, remember that no gains are guaranteed even with a risk management strategy in place. Always DYOR and only invest as much as you can afford to lose.
