Federal Reserve Asserts Independence Amid Rate Cut Pressure – Coincu

Key Points:

  • Jerome Powell confirms Fed’s independence despite Trump’s rate cut request.
  • Market reassured by the reiteration of policy autonomy.
  • Bitcoin reacts neutrally to the Fed’s independence statement.

President Trump’s push for interest rate cuts received a firm response from Federal Reserve Chairman Jerome Powell, who reaffirmed the central bank’s operational independence in Washington, D.C.

Powell’s reiteration is vital to maintaining investor confidence in monetary policy free from political influence.

Powell’s Independence Pledge Calms Economic Nerves

Jerome Powell, Chairman of the Federal Reserve, responded to public pressure from former President Donald Trump for interest rate cuts by emphasizing the institution’s independence. Powell assured that political influence plays no role in the Federal Reserve’s policy decisions, reinforcing the established stance of policy autonomy.

The Federal Reserve’s statement reassures investors by highlighting its commitment to decisions based on macroeconomic indicators rather than political agendas. This backbone of policy integrity remains crucial as crypto assets like BTC, sensitive to U.S. monetary policy, feel pressure under potential shifts in interest rates.

Jerome Powell, Chairman, Federal Reserve, “Political considerations play no role whatsoever in our decisions regarding monetary policy.”

Bitcoin Holds Steady Amid Fed’s Unyielding Stand

Did you know? The Federal Reserve’s independence from political influence has been a core principle since its founding in 1913, maintaining stable and predictable financial governance.

Bitcoin (BTC) remains resilient, with its current price at $96,267.20 and a market cap of $1.91 trillion, after Powell’s statement reasserted U.S. monetary policy independence. CoinMarketCap reports BTC’s 24-hour trading volume reached $63.29 billion. It saw a 1.26% price increase within the last 24 hours.

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Bitcoin(BTC), daily chart, screenshot on CoinMarketCap at 19:19 UTC on May 7, 2025. Source: CoinMarketCap

The expert analysis from the Coincu research team suggests that the Federal Reserve’s stance could support long-term stability in cryptocurrency markets. Historically, BTC has shown volatility around U.S. monetary policy events, but Powell’s assurance may act as a stabilizing force for risk assets amid ongoing regulatory scrutiny.

Source: https://coincu.com/336223-federal-reserve-rate-cut-independence/