The crypto market is poised for a significant rally as President Donald Trump criticized Federal Reserve Chair Jerome Powell’s interest rate cut plans. The President’s approach to cryptocurrencies, coupled with these recent comments on the Fed’s monetary policy, has sparked enthusiasm within the crypto community.
Let’s explore how Donald Trump’s urge for a rate cut could impact the crypto market and trigger a bullish rally.
Donald Trump Slams Fed Chair: How Will It Impact the Crypto Market?
In a Truth social post, US President Donald Trump shared a critique on Federal Reserve Chair Jerome Powell’s interest rate cut moves. Addressing Powell as “Too Late,” Trump condemned the latter’s monetary policy decisions as “TOO LATE AND WRONG.”
Notably, Trump’s push for Fed’s interest rate cut has sparked anticipations of a potential rally in the crypto market. Currently, the crypto market is on a neutral path, with top cryptocurrencies poised for a bullish rebound. If Jerome Powell reduces interest rates in response to Trump’s call, a bullish rally could be on the horizon.
What Drives Trump’s Criticism?
Interestingly, Trump’s criticism follows Jerome Powell’s Wednesday’s speech at the Economic Club of Chicago, which led to a notable stir in the crypto market. The Chair posited that the administration’s tariffs have put the central bank in a challenging position, forcing it to balance between controlling inflation and boosting economic growth. As a result, the Fed is adopting a wait-and-see approach, prioritizing clarity on economic trends before making further policy decisions.
Powel stated,
If that were to occur, we would consider how far the economy is from each goal, and the potentially different time horizons over which those respective gaps would be anticipated to close.
In response to Powell’s report, Trump stated, “[Powell] yesterday issued a report which was another, and typical, complete “mess!”.”
Trump Calls For Rate Cut, What’s Ahead?
Specifically, the US President’s criticism is directed towards the Fed’s interest rate cuts, invoking speculations within the crypto market. Citing the European Central Bank’s (ECB) rate cut for the seventh time, Trump noted that the Fed should have lowered interest rates long ago.
Significantly, the ECB reduced the deposit facility rate by 25 basis points to 2.25%. Reportedly, the ECB lowered its key interest rates, cutting the main refinancing rate to 2.4% from 2.65% and the marginal lending rate to 2.65% from 2.9%.
Citing ECB’s developments, Trump stated that the Fed is too late to lower its interest rates. He added, “He should certainly lower them now.”
Crypto Market Watches as Trump Calls for Powell’s Firing
Trump has criticized Powell’s monetary policies multiple times. However, this is the first time the President has explicitly called for Powell’s firing. He stated, “Powell’s termination cannot come fast enough!”
The crypto market’s reaction to Trump’s statements is uncertain, but may lead to increased volatility. Though it is unknown if Powell would lower rates, the community believes that the criticism could make a significant impact on the crypto market.
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