Part 6/9:
Senator Jack Reed's line of questioning regarding President Trump's tariffs exposed the Fed's carefully balanced role in external economic pressures. With predictions that tariffs could result in drastic household expenses and inflation rates, Powell reiterated that the Fed’s duty is to react thoughtfully to these pressures rather than shape them. Yet, the possibility that these tariffs may incentivize Bitcoin and crypto adoption due to their decentralized nature highlights a relationship of increasing relevance between traditional monetary policy and emerging digital assets.