Donald Trump criticized Jerome Powell on social media, urging interest rate cuts. The call for rate cuts by Trump could impact financial markets, including crypto.
Donald Trump has taken to his social media platform to sharply criticize Jerome Powell, the Chair of the Federal Reserve, describing him as an “idiot” and blaming him for costing America “billions of dollars.” As Trump stated, “Too late Mr. Powell is the worst, he is really an idiot, costing America billions of dollars!”
Trump’s Pressure on Powell to Resign or Cut Rates
Trump’s call for Powell to cut interest rates or resign echoes sentiments from the regulator of Fannie Mae and Freddie Mac. This highlights potential shifts in U.S. monetary policy.
Market reactions to these calls include discussions on potential impacts across financial markets. Analysts note that rate cuts could spur activity in mortgage markets, while crypto assets like Bitcoin and Ethereum may also be affected.
Potential Crypto Market Shifts Following Trump’s Comments
Did you know? In prior cycles, Trump’s public criticisms of monetary policy often coincided with volatility in both traditional and crypto markets, reflecting shifting liquidity expectations.
According to CoinMarketCap, Bitcoin (BTC) currently trades at $105,110.13 with a 24-hour volume decline of -8.63%. Although its price dipped by -0.33% in the last day, it rose 24.36% over 90 days, positioning it as a key player amid ongoing market dynamics. As emphasized by Bill Pulte, from the Federal Housing Finance Agency, “Fannie Mae’s and Freddie Mac’s regulator called for Federal Reserve Chairman Jerome Powell to step down on Wednesday if he doesn’t cut…”
Coincu’s research team suggests that financial outcomes of Trump’s criticisms could realign investor expectations. Historical trends show that dovish signals from the Federal Reserve often lead to increased activity in high-risk markets such as crypto assets.
