Trump dey eye Federal Reserve leadership change, hint say aggressive interest rate cuts go affect markets
Former U.S. President Donald Trump don announce say e wan replace Federal Reserve Chair Jerome Powell, name Kevin Warsh as im preferred candidate. Trump criticize Powell for no dey do enough on monetary policy and e dey push for aggressive 1-percentage-point interest rate cut, even if May job growth strong pass how dem expect. E compare am to the recent European Central Bank rate cuts, talk say lower rates need to manage U.S. debt load. Market no too believe say Fed go do big cut for the next meeting. Warsh, wey be former Fed governor, dem see am as person wey fit reason accommodative policy well, fit bring shift to easier monetary conditions. This matter dey make people dey speculate about U.S. dollar stability and other risk assets like cryptocurrencies. Crypto traders suppose watch possible Fed leadership change and interest rate decisions well, because e get strong influence on how crypto market dey feel and price movement. This whole talk show how important central bank policy direction be to how financial and crypto markets trend dey shape.
Bullish
Trump move wey wan change Fed Chair Powell plus support big cut for interest rate show say e dey shift towards more soft monetary policy. Normally, when central bank dey dovish, e dey reduce the yield for normal assets like US dollar and Treasuries, dis one dey make investors dey find better returns for riskier assets like cryptocurrencies. The chance say policy go easy fit bring more liquidity, wey go boost demand plus price for crypto market both short term and long term. Expectation of change for leadership and policy easing fit make positive feeling grow and make capital flow enter digital assets more, especially if dem see new chair as pro-easing. But market still dey careful about how soon dis kain change fit happen, so we fit get short term wahala till decision confirm.