Trump Shock Fed, E D Push Demand For Rate Cut Come September
President Trump intervention for Fed raise support for rate cut before di important meeting for September. Fed Governors Mary Daly and Neel Kashkari recently talk say make dem loosen policy, join Bowman and Waller wey dey signal say make dem cut interest rate. Governor Christopher Waller colleague sudden resign make di pro-cut faction grow from two to three votes. Seven votes need to reduce rate, market dey see say e possible for Fed to cut rate for September. FOMC members talk say economic growth dey slow down, labour market fit weak and inflation get change. Traders now dey price say e get high chance to cut rate for September. Dis change fit put pressure for dollar and push cryptocurrencies. But Trump fiscal plans like Japan 15% crypto tax and new Russia sanctions fit balance di monetary ease. Crypto traders suppose watch Fed voting, labour info and geopolitical taxes. Rate cut for September fit make risk assets rise short term, but long term market stability depend on bigger fiscal and geopolitical development.
Bullish
Di news dey beta for crypto traders because e dey increase chances say Fed go cut rate for September—dis kinda environment don always favor risk assets like cryptocurrencies. Wen Fed dey ease money policy, lower borrowing cost and weaker dollar dey make investors put money for riskier investments. Similar things wey happen for 2020 and early 2021 make crypto prices go up as markets dey expect make policy support stay. Short term, plenty people expect rate cut fit cause fresh money and good price waka.
But Trump dey also do some fiscal moves—like new 15% crypto tax for Japan and heavier sanctions on Russia—which fit bring wahala. Dem fit cause market to dey shake or reduce gains, especially if e affect how much people dey trade. Long term, bigger geopolitical and tax policy moves go decide how stable market go be. For now, di tight chance say Fed go cut rate make people get better hope for crypto assets.