Trump Accuses Federal Reserve of Sabotage, Demands 2.5% Rate Cut
Former President Donald Trump has intensified criticism of the Federal Reserve, accusing Chair Jerome Powell and the Fed board of intentionally harming the U.S. economy. On Truth Social, Trump labeled Powell “the dumbest and most destructive” member and called for a 250 basis-point rate cut to alleviate high debt costs under the Biden administration. Despite having appointed Powell and other board members, Trump now blames them for elevated interest rates and rising borrowing expenses. Powell reiterated that the Fed will wait for more economic data before considering any rate cuts. Trump has repeatedly threatened to replace Powell but has yet to act. The dispute highlights ongoing political pressure on Fed independence and could weigh on the U.S. dollar, potentially boosting crypto assets as traders anticipate looser monetary policy.
Bullish
Trump’s public attack on the Federal Reserve and his demand for a steep 2.5% rate cut increase political pressure on monetary policy. If the Fed responds with looser policy or markets price in lower rates, the U.S. dollar could weaken. A softer dollar often leads traders to shift into crypto assets like BTC and ETH, driving short-term bullish momentum. In the longer term, sustained expectations of lower rates could boost risk appetite across digital assets, supporting a broader bullish trend in the crypto market.