Trump Criticizes Fed Chair Powell Over Rate Hold, Unveils 10% Import Tariff Amid Rising Global Trade Uncertainty
Former US President Donald Trump has renewed attacks on Federal Reserve Chair Jerome Powell after the central bank left interest rates unchanged for a third straight month, calling Powell ’slow and ineffective’. Simultaneously, Trump introduced a new 10% minimum import tariff on countries with US trade agreements, with even higher rates for nations running sizable trade surpluses, citing efforts to protect US interests and combat inflation. He highlighted the recent US-UK trade deal, maintaining a 10% US tariff on UK goods while the UK lowers tariffs on US products. While UK leaders expressed optimism, analysts warned the agreement was limited and hard to replicate with larger partners. Trump insists his trade and monetary policies are driving down costs and increasing tariff revenues. These developments—sharp political scrutiny of Fed policy and escalating global trade tensions—could fuel speculation in financial markets, impacting USD liquidity, risk sentiment, and ultimately influencing cryptocurrency valuations, as traders respond to changing US economic and trade directions.
Neutral
The news introduces heightened political pressure on the Federal Reserve regarding interest rate policy and adds fresh trade uncertainty with the announcement of new US tariffs. While these developments could increase market volatility and impact dollar liquidity, their direct influence on cryptocurrency prices is unclear and hinges on further escalation or policy shifts. Traders may anticipate possible indirect impacts, such as shifts in risk sentiment or capital flows into crypto as a hedge, but there is not enough concrete detail for a clearly bullish or bearish outlook. The market’s overall reaction may remain neutral in the short term until there is clearer follow-through from either Fed policy changes or significant trade escalations.