Trump Blasts Fed Rates, Threatens to Fire Powell
Former President Donald Trump criticized Federal Reserve interest rates as “too high,” warning that elevated borrowing costs could hamper growth. He said he would not hesitate to fire Fed Chair Jerome Powell, though he conceded that a Powell dismissal might unsettle markets. Analysts note that abrupt Fed leadership changes often fuel volatility as investors reassess monetary policy. Despite the critique, Trump expects Powell to remain to avoid disruption. Crypto traders should monitor Federal Reserve rate decisions and any Powell developments, as heightened uncertainty may trigger volatility across digital assets.
Bearish
This news is bearish for the crypto market. Elevated Federal Reserve rates and threats to fire Chair Powell create uncertainty, prompting risk-averse behavior among investors. In the short term, traders may see increased volatility and potential sell-offs as markets price in tighter monetary policy and political pressure on central bank independence. Over the long term, persistent high rates could reduce liquidity and dampen speculative demand for digital assets, keeping downward pressure on prices.