Powell, Possibility of Interest Rate Cuts and Economic Impact Forecast Due to Trade Agreement

- **Chair Powell emphasizes that upcoming trade agreements could pave the way for interest rate cuts** - **Discussion on boosting the economy through semiconductor and automotive collaboration and the impact on the cryptocurrency market** [Unblock Media] Jerome Powell, Chair of the U.S. Federal Reserve (FED), stated that "upcoming trade agreements could enable interest rate cuts." He explained that strengthened supply chain cooperation among the U.S., EU, Japan, and South Korea could positively impact economic growth and reduce corporate costs in the semiconductor and automotive industries. Notably, the memorandum of understanding (MOU) for advanced semiconductors, signed in the first half of 2025, is driving reductions in tariffs and providing tax benefits for research and development (R&D). This initiative is fostering increased global semiconductor investment and job creation. Furthermore, the electric vehicle tariff elimination agreement is enhancing the export competitiveness of U.S.-made EVs, with major automakers reporting an 8% increase in sales compared to the previous year. Meanwhile, if interest rate cuts lead to a decline in the value of the dollar, the cryptocurrency market may experience a surge in activity. Bitcoin exchange-traded funds (ETFs) have seen a year-on-year fund inflow increase of 15%, with trading volume on major cryptocurrency exchanges projected to rise by over 20%. However, the final decision on interest rates will reflect a thorough assessment of various economic indicators, including inflation, employment, and international risks.