Trump’s Push to Replace Fed Chair for Aggressive Rate Cuts

Former President Donald Trump is signaling a dramatic shift in U.S. monetary policy. According to The Kobeissi Letter (via BlockBeats), Trump plans to replace Federal Reserve Chair Jerome Powell in pursuit of aggressive interest rate cuts — reportedly up to 300 basis points. He argues the current 4.25%–4.5% range is too restrictive and is stifling economic growth.

Most analysts, however, view such deep cuts as improbable. Instead, they expect a more measured approach, potentially starting with a 25-basis-point reduction at the Fed’s September 2025 meeting.

History provides important context. Aggressive cuts in the 1970s contributed to rising inflation and widened wealth inequality, with asset prices soaring while wages lagged. Today, the U.S. wealth divide is already stark: the top 0.1% control 5.5 times more wealth than the bottom 50%, and the top 1% own over half of U.S. equities. Steeper cuts could exacerbate these imbalances, fueling bubbles in financial assets.

Globally, central banks are leaning toward looser policy. In May 2025 alone, there were 15 rate cuts worldwide — the largest synchronized easing wave in more than two decades. The Fed, however, has held steady since December 2024, wary of inflationary pressures tied to Trump’s tariffs and geopolitical risks.

Trump’s timing is politically charged. Powell’s term doesn’t expire until May 2026, yet Trump appears ready to accelerate leadership changes to align the Fed with his economic agenda. Such a move would raise concerns over the independence of the central bank, while potentially sparking volatility in global markets.

For investors, the key takeaway is not just whether rates fall, but how fast and under what leadership. Markets are now pricing in September as a pivot point — but the path ahead remains highly uncertain.#BNBATH900 #CryptoRally #BTCWhalesMoveToETH #HEMIBinanceTGE