Trump Demands 3% Fed Rate Cut, Crypto Markets React

Former President Donald Trump has urged the Federal Reserve to slash interest rates by 300 basis points from 5.5% to around 2.5%, criticizing Chair Jerome Powell’s restrictive monetary stance. Analysts warn such a cut could save up to $870 billion annually on the $29 trillion U.S. debt—though realistic refinancing may yield about $174 billion in year one—while risking CPI inflation above 5% and a housing market surge. In the crypto market, the announcement fueled a roughly 1% jump in Bitcoin, as traders weighed the outlook for lower borrowing costs, increased liquidity and renewed risk appetite. High Fed rates have previously driven funds into bonds and a stronger dollar, dragging on volatile assets and slowing blockchain development. Crypto traders should monitor Fed announcements, inflation data and employment reports to anticipate shifts in monetary policy. Diversification and a long-term view can help mitigate volatility around potential rate cuts.