XRP Army Anticipates this Fed Chair's Decision: Everything Could Change Tomorrow

The XRP community is bracing for a potentially market-moving decision as Federal Reserve Chair Jerome Powell prepares to speak at 2:30 PM ET tomorrow

According to STEPH IS CRYPTO, this announcement could “send XRP higher,” especially if the Fed signals a shift in its current monetary policy stance. With risk assets like XRP highly sensitive to changes in interest rates, all eyes are now on Powell’s next words.

Trump’s Pressure and the Politics of Rate Cuts

The Fed’s policy decision comes under the shadow of growing political pressure. President Donald Trump has recently intensified criticism of Powell for maintaining high rates, particularly in the face of his administration’s renewed tariff actions. Trump argues that high borrowing costs could stifle economic growth at a critical time.

Still, Powell and most Fed officials have remained cautious. Morgan Stanley’s Chief U.S. Economist, Michael Gapen, expects Powell to reiterate a “wait-and-see” approach, citing “considerable uncertainty” tied to tariff impacts and broader economic conditions

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So far, the U.S. economy hasn’t drastically changed since earlier in the year, job growth continues, albeit at a slower pace, and inflation is cooling but still above the Fed’s 2% target.

No Immediate Rate Cut Expected

According to Investopedia, markets are not expecting the Federal Reserve to announce a rate cut tomorrow. Instead, attention is focused on the Fed’s outlook, particularly whether Powell will indicate that cuts are likely in September. Currently, the Fed has kept interest rates between 4.25% and 4.5%, despite growing calls for easing.

According to the CME Group’s FedWatch Tool, there is a 62% probability of a rate cut in September. By then, the Fed will have reviewed the July and August jobs reports, critical data that could reveal whether the labor market is weakening or remaining resilient.

Diverging Views Within the Fed

Not all Fed officials agree on the current course. Fed Governor Christopher Waller, reportedly a contender to replace Powell under the Trump administration, has made the case for a preemptive rate cut. Waller recently pointed out that private-sector job growth is nearing “stall speed” and warned against waiting too long to act.

“We should not wait until the labor market deteriorates before we cut the policy rate,” Waller said, adding that inflation driven by tariffs may be “one-off increases” unlikely to persist.

On the other hand, Atlanta Fed President Raphael Bostic argues for more caution. He believes inflation expectations could become unanchored if rate cuts come too soon. Although inflation rose by just 2.7% in May, far lower than the post-pandemic highs, Bostic warns the full inflationary effects of tariffs could take a year or more to surface.

What This Means for XRP and the Markets

Bank of America analysts have noted that while the Fed is mostly unified, internal divisions are becoming more visible and may lead to more frequent dissents. Such disagreements, especially during a time of political scrutiny, could signal a more contentious decision-making process ahead.

For XRP holders, tomorrow’s statement could serve as a critical inflection point. If Powell signals a dovish turn or hints at imminent cuts, risk assets like XRP could rally as investors shift back into speculative positions. As STEPH IS CRYPTO puts it, “Everything could change tomorrow.”

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