Trump Demands Fed Rate Cuts, Criticizes Powell Amid Market Pressure
Former President Donald Trump intensified his attack on Fed Chair Jerome Powell, calling him a “numbskull” and urging immediate interest rate cuts of 1–2%. Trump blamed Powell’s high-rate policy for up to $1 trillion in annual U.S. costs, dismissed lingering inflation worries, and hinted at firing Powell before his term ends. Meanwhile, Fed Governor Christopher Waller argued for a July rate cut as inflation eases, while other officials, including Mary Daly, prefer waiting until fall for more data. This split Fed rate cuts outlook adds uncertainty but signals potential liquidity boost. Crypto traders should watch for looser monetary policy—lower interest rates tend to drive risk-asset flows and could fuel bullish momentum in digital assets.
Bullish
Expectations of Fed rate cuts and looser monetary policy typically boost liquidity and risk-asset demand, which can drive crypto prices higher. In the short term, traders may see increased trading volumes as markets price in a July cut, while long-term easing can sustain a bullish cycle by lowering borrowing costs and attracting more capital into digital assets.