Fed Under Fire as Bitcoin Surges Past $120k
U.S. stock markets recorded minor gains as tariffs dominated discussions, with Bitcoin achieving new all-time highs.
U.S. stock indices experienced slight upticks as investors focused on tariffs and the Federal Reserve. On Monday, July 14, the Dow Jones increased by 50 points, equivalent to 0.11%. The S&P 500 also advanced by 0.11%, while the tech-centric Nasdaq rose by 0.32%.
Market participants showed reduced risk tolerance following President Donald Trump’s announcement of a 30% tariff on Mexico and the European Union, slated to begin on August 1. Both are key trading partners for the U.S., impacting overall market sentiment. Currently, Mexico and the EU are pushing for a lower tariff rate.
Meanwhile, markets are evaluating whether these tariffs signal a shift in long-term policy or are merely a strategy for negotiating better trade agreements for the U.S.
In contrast to the cautious mood in equities, the cryptocurrency market continues to flourish. Bitcoin (BTC) has set yet another record, reaching an all-time high of $123,091. Fueled by rising ETF interest and greater corporate treasury allocations, the Bitcoin bull market remains strong, subsequently uplifting the altcoin sector.
Fed Faces Criticism Over $2.5B Renovation
The Federal Reserve has come under increased scrutiny following the controversy surrounding its planned $2.5 billion renovation of its main facility. The initiative has faced criticism from both the White House and potential candidates for the leadership of the nation’s central bank.
White House economic adviser Kevin Hassett criticized the project, pointing out a $700 million budget overrun and stating that the administration would pursue further investigations. Former Fed governor Kevin Warsh also voiced disapproval, deeming the costs as “outrageous.”
Since President Trump took office, the administration has consistently urged the Fed to lower interest rates. The controversy around the renovation could potentially serve as a political tool to challenge the current Fed Chair Jerome Powell.