Trump, tariffs, and the silent play against the Fed – what does this have to do with crypto?
The recent tariff escalation promoted by Donald Trump, although at first glance it seems like a conventional protectionist move, hides a deeper geopolitical and economic chess game. Behind the measures that pressure exports and increase trade tensions, there is a strategy aimed at putting the Federal Reserve in a tight spot.
How? By adopting aggressive tariffs, Trump artificially slows down global trade and threatens the economic growth of the United States. The slowdown generates uncertainty, consumption contracts, and markets react negatively — the ideal scenario for the Fed to be forced to cut interest rates or, in a more critical stage, to start printing money again (quantitative easing).
And what’s the gain from this? A new injection of liquidity into the American economy boosts risk assets, drives markets, and at the same time, devalues the dollar. This benefits the American trade balance and weakens public debt in real terms — a move that, if successful, even allows for a renegotiation of the debt under more favorable terms.
In other words, by provoking a controlled recession, Trump forces a reaction from the Fed that, in the medium and long term, can relieve the United States of the burden of debt and reposition the country as an even more dominant power.
But this maneuver has global side effects. Market noise, currency instability, capital flight from emerging economies, and — here comes the crucial point — the strengthening of alternative and decentralized assets, such as Bitcoin and other cryptocurrencies.
When the Fed gives in, and it will give in, we will see a rush for hard and decentralized assets. And then, the light at the end of the tunnel will be visible to all — but few will have entered the tunnel in time.
