Trump urges Fed to cut rates after 4.3% Q3 GDP beat; Hassett backs cuts

Published: 2025-12-24 09:49:25 |

President Donald Trump urged the Federal Reserve to cut interest rates after U.S. Q3 2025 GDP unexpectedly rose 4.3% (consensus 3.3%). Trump argued stronger growth should prompt more accommodative monetary policy to sustain the expansion. Former White House NEC director Kevin Hassett publicly supported rapid cuts, citing AI-driven productivity gains and tariff-related trade improvements as evidence that inflationary pressures are easing. The debate comes as Fed leadership faces turnover: Jerome Powell’s term ends in May 2026 and the White House is expected to nominate a successor, raising the prospect that a Trump appointee could shift policy toward earlier cuts. Markets will watch Fed appointments, rate guidance and any move toward easing closely because earlier-than-expected rate cuts would likely increase liquidity and risk appetite, with potential implications for crypto and other risk assets. Key SEO keywords: Fed rate cuts, US GDP 4.3%, monetary policy, Fed leadership, crypto market liquidity.

Bullish

An early Fed pivot toward rate cuts increases macro liquidity and risk appetite — conditions that historically support higher prices across risk assets, including cryptocurrencies. The Q3 GDP beat and public pressure from President Trump and Kevin Hassett raise the probability of political influence on Fed appointments and a shift in policy stance. Short term: market volatility may rise as traders price in nomination news and changing rate-path expectations; crypto could rally on any concrete signs of easier policy or dovish guidance. Long term: if a Trump appointee materially accelerates cuts, sustained lower rates could underpin broader risk-on flows and higher crypto valuations. Offsetting factors include persistent inflation risks or a Fed that resists political pressure; in that case, impact would be muted or transient. Overall, given the increased chance of earlier easing implied by the coverage, the expected directional crypto price effect is bullish.