- Trump’s call for Fed rate cuts amid economic changes; Powell retains post.
- Market reactions reflect investor expectations for lower interest rates.
- No immediate direct impact on individual cryptocurrencies noted.
President Donald Trump expressed his intentions to maintain Jerome Powell as Fed Chairman during a ceremony on Tuesday, urging more aggressive rate cuts.
Trump’s rate cut call aims at economic stimulus amid strong stock market performance; dovish policy signals positively affect investor sentiment.
Trump’s Economic Strategy and Federal Reserve Dynamics
At the SEC Chairman Atkins’ swearing-in, President Trump confirmed he has “no plans” to fire Fed Chairman Jerome Powell, despite desires for more aggressive rate cuts. Trump highlighted grocery prices dropping and called the current moment “perfect” for rate reductions. He emphasized, “The stock market is doing quite well.”
President Trump’s remarks initiate debates over Federal Reserve policies. Markets typically perceive dovish stances as favorable for assets sensitive to interest rates, including equities and cryptocurrencies. Analysts observe potential bullish market trends should the Fed lower rates, affecting assets like Bitcoin and Ethereum.
Donald J. Trump, U.S. President, said, “I have no plans to fire [Fed Chairman Powell]. I would like to see him be more aggressive about lowering rates. Grocery prices have gone down, everything is going down. The only thing that hasn’t gone down but hasn’t really gone up is interest rates… We believe the Fed should lower rates; now is a perfect time. We hope our chairman can cut rates early or on time, rather than late. The stock market is doing quite well.”
Cryptocurrencies and Rate Cut Speculation
Did you know? U.S. presidential influence over interest rate policy has historically impacted cryptocurrency market behavior, as rate cut expectations often boost investor appetite for risk assets like Bitcoin and Ethereum.
According to CoinMarketCap, Bitcoin is trading at $94,362.39 with a market capitalization of formatNumber(1873569375554.64, 2). Bitcoin saw a 6.79% increase in 24 hours, escalating its 7-day gain to 12.57%. Despite shorter-term gains, it experienced a 7.66% decline over 90 days. The circulating supply approaches 19.86 million Bitcoin of a 21 million cap.
Coincu research suggests potential intensification in the crypto market volatility, as rates indirectly impact speculative investment. Experts note if the Fed signals rate cuts, Bitcoin and major crypto assets may benefit, given the historical preference for riskier assets under easing conditions.
Source: https://coincu.com/333833-trump-rate-cuts-fed-influence/