US Fed Chair Jerome Powell Gets Global Support, No Rate Cut Likely
- More than eight global bankers have issued a joint statement in support of US Fed Chair Jerome Powell.
- There is a 94.5% chance of no rate cut after the January meeting.
- Investments in the crypto market could vary accordingly.
The US Fed Chair Jerome Powell has received support from global central bankers. This comes amid the rising tension between him and US President Donald Trump. Support in such a large number has triggered anticipation of no rate cut in the January meeting. Thereby affecting the crypto market to some extent.
Support Flows for US Fed Chair Jerome Powell
Over eight heads of global institutions have backed the actions of US Fed Chair Jerome Powell. They have said that he acted with integrity, adding that the US Federal Reserve was independent in keeping prices plus financial markets stable. Some of the supportive bankers are the heads of the Bank of England, the European Central Bank, and the Bank of Canada.
A joint statement issued by them underlines that all of them stand in full solidarity, highlighting that the independence of a central bank is always a cornerstone to stability in price, economy, and finance.
Notably, this is not the first time Trump has had a feud with Powell regarding a rate cut. A report from last year shows a similar pattern where the US President criticized Jerome for refusing to cut rates.
What Happens to the Fed Rate Cut Now?
There is a 94.5% chance for the Fed Reserve to not change rates, according to Polymarket. The central bank last slashed rates in December 2025 by 25 bps. This brought the lending rate down to the range of 3.5% and 3.75%. Similar reductions were done in September and October 2025.
Additionally, there is a 5.3% chance for a 25 bps reduction and less than 1% chance for a 50 bps reduction.
Slashing lending rates, for a quick reference, increases borrowing power – allowing markets to make more investments in different sectors, including the crypto segment. However, it often triggers nationwide inflation, which, for the US, last dropped to 6.89% in November 2025. This was down from 3.01% in September 2025.
The Trump-Powell Feud
Powell, in a recent report, stated that his indictment was possibly due to refusing rate cuts after the January meeting. Like last year, it is reported that Trump insisted on slashing the rate again in January 2026; however, Powell disagreed by citing that the agency would only take decisions based on its assessment.
For now, the Department of Justice (DoJ) is probing the case, and prosecutors are scrutinizing renovations along with his testimony. Jerome has also claimed that this is an attempt to weaken the independence of the US central bank.
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Investors Pull Millions from Bitcoin and Ethereum ETFs Ahead of Powell’s Speech
Highlights: Investors withdrew millions from Bitcoin and Ethereum ETFs ahead of Powell’s speech. Bitcoin trades near $113,000 support, while Ethereum holds just above $4,200 levels. Analysts see mixed trends, citing liquidity sell-offs and weakening on-chain profitability signals. A few hours before Fed Chair Jerome Powell spoke at 11:30 a.m. ET, investors pulled large amounts from Bitcoin and Ethereum ETFs. This showed caution in the market. Bitcoin is trading near key support levels, and Powell’s speech could decide its next direction. Bitcoin ETFs See Major Outflows On September 22, neither spot Bitcoin ETFs nor Ethereum ETFs had any new inflows, reflecting a risk-off mood among investors. Bitcoin ETFs posted a total net outflow of $363.17 million, led by Fidelity’s FBTC with $276.68 million. Ark & 21Shares followed with $52.30 million, Grayscale’s GBTC withdrew $24.65 million, and VanEck’s HOLD had a small sale of $9.54 million. Overall trading reached $3.43 billion, with total net assets at $148.09 billion, showing strong user activity and growing confidence in the asset. This represents 6.59% of the total Bitcoin market capitalization. Ethereum ETFs Face $76 Million Outflow On the other hand, Ethereum ETFs recorded a total net outflow of $75.95 million on Monday. Fidelity’s FETH led with $33.12 million, followed by Bitwise ETHW and Grayscale ETH at $22.30 million and $5.4 million, respectively. BlackRock’s ETHA withdrew $15.07 million. None of the nine ETFs saw any inflows that day. The total trading value of Ethereum ETFs reached $2.06 billion, showing steady market activity and a strong industry position. Net assets stood at $27.52 billion, representing 5.45% of Ethereum’s total market capitalization. The outflows follow a pattern of ups and downs seen earlier this year. Ethereum ETFs saw a change in investor interest. Fidelity and Bitwise led most of the withdrawals. BlackRock’s iShares Ethereum ETF had some inflows that partially balanced the trend. Since their launch in July last year, spot Ethereum ETFs have gathered more than $13 billion in total net inflows. Meanwhile, Grayscale’s legacy trust experienced outflows exceeding $4.5 billion, as investors shifted to newer, lower-fee options. Outflows often happen when Bitcoin’s price becomes volatile. Investors usually pull funds if the price drops below key support levels. On September 22, spot Bitcoin ETFs recorded total net outflows of $363 million, with none of the 12 funds seeing inflows. Spot Ethereum ETFs saw total net outflows of $75.95 million, with all nine funds posting no inflows.https://t.co/Hj2Gs49bWa pic.twitter.com/YqCrJSMnIg — Wu Blockchain (@WuBlockchain) September 23, 2025 Fed’s Recent Rate Cut and Market Impact Today’s speech follows the Fed’s recent rate cut. The quarter-point cut lowered rates to 4.00%-4.25%. Powell said the move was for risk management, not aggressive easing. He added that risks to jobs have increased. The Fed decided to take another step toward a neutral policy. Markets are waiting to see if the Fed will stay cautious or signal more rate cuts. This decision could guide Bitcoin’s next move. BTC is trading around $113,000, with support near $111,000. Ethereum is just above $4,200. The Fear & Greed Index is at 40, showing neutral sentiment. Analysts have different views. Joao Wedson from Alphractal says BTC’s cycle “is losing momentum” as on-chain profits fall. Michaël van de Poppe refers to the drop as a “classic liquidity sell-off” which could trigger a rebound. Altcoins now come into view for some analysts as the next opportunity. The altcoin-season index last reached a record high since last year with rising rotation. Bitcoin is already showing signs of cycle exhaustion — and very few are seeing it. The SOPR Trend Signal is excellent at signaling when blockchain profitability is drying up.Never in Bitcoin’s history have investors accumulated BTC so late and at such high prices.Maybe only… pic.twitter.com/I1GBdEJH03 — Joao Wedson (@joao_wedson) September 22, 2025 eToro Platform Best Crypto Exchange Over 90 top cryptos to trade Regulated by top-tier entities User-friendly trading app 30+ million users 9.9 Visit eToro eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk. Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment, and you should not expect to be protected if something goes wrong.