The ongoing tariff war between the US and China is intensifying, and the resulting tension is sending shockwaves through the crypto market, causing significant drops in the value of Bitcoin and altcoins.

Amidst market expectations that the Federal Reserve (FED) will soon begin lowering interest rates to help Bitcoin and altcoins recover, powerful voices on Wall Street are urging the FED to implement an immediate rate cut.

However, renowned economist Nouriel Roubini – famously known as “Dr. Doom” for his uncanny predictions about the 2008 global financial crisis – has issued a fresh warning aimed at Wall Street.

Roubini, who also holds a professorship at New York University and is a well-known Bitcoin skeptic, cautioned investors against expecting the Fed to swiftly resolve the financial market turmoil sparked by Trump’s tariffs.

In a statement to Bloomberg, Roubini advised investors to lower their expectations of the Fed acting as a quick savior, cautioning that those anticipating rapid intervention from the Fed may be in for disappointment.

The Fed’s Strategy: Waiting for Trump to Make the First Move!

The respected economist asserted that Federal Reserve Chairman Jerome Powell will indeed step in to stabilize the market, but only after Trump initiates the first move by easing his stance and softening his rhetoric.

Roubini further suggested that he anticipates the Fed will maintain steady interest rates for the remainder of the year, assuming the tariff-related policy disputes de-escalate and the U.S. economy manages to avoid a recession.

He further emphasized that investors anticipating a swift Fed intervention are likely to be disappointed and that relying on the Fed to single-handedly resolve the financial market instability caused by Trump’s international trade tariffs is misguided. According to Roubini’s analysis, Powell is more likely to wait for Trump to soften his policies before stepping in to stabilize market volatility.

*Please remember, this is not investment advice.