Trump criticizes Federal Reserve Chairman Powell for high interest rates
President Donald Trump once again aimed at becoming the chairman of the Federal Reserve System Jerome Powell, calling him a “stubborn man” and denounced America’s poor housing for high interest rates. In a post about the True Society, Trump accused Powell of refusing to cut interest rates, claiming that it costs the country $1 trillion a year and hurts American families.
What does this mean for cryptography?
Trump’s latest explosion has put new political pressure on the US Central Bank, and its impact on crypto is noteworthy.
1. More pressure in rate reduction = Bitcoin bullish
Lower interest rates reduce the opportunity cost of holding non-revenue assets like Bitcoin. If Powell ultimately falls into political and market pressure, it could lead to a surge in risky assets, including cryptocurrencies.
2. Institutional funds can flow through codes
Even the Fed’s pivot or Dovish tones have historically promoted rallies of stocks and digital assets. Rate-reducing environments could accelerate exposure as institutions such as BlackRock, Fidelity and major banks are already focusing on crypto.
3. Cryptocurrency as a hedge against policy uncertainty
Trump’s tone highlights the unpredictability of fiscal and monetary policy. For many investors, crypto, and Bitcoin in particular, have central bank indecision, inflation, and hedges against government money.
Is the Fed trying to pivot?
Powell has so far resisted calls for cuts from the president himself to increase political pressure, but he was able to change the tone at the next FOMC meeting. If rate reductions are suggested, the crypto market could ultimately execute the move.
The 2024-2025 cycle already proves that macro policies have a direct impact on digital assets. Trump’s direct involvement in this debate is another indication that Crypto is no longer a niche. It is now part of a broader financial story.
