The crypto market is closely watching the feud between President Trump and Fed Chair Jerome Powell. Trump’s latest attack came through social media, where he called Powell “too late and wrong.” He demanded immediate interest rate cuts and even suggested Powell should be fired. The tension is escalating just as Powell warned that Trump’s tariffs could cause higher inflation and slower growth.
This public clash adds fuel to crypto speculation. Lower interest rates usually drive investors toward riskier assets like Bitcoin and altcoins. So, any hint of Fed policy loosening boosts hopes for a bullish crypto rally. Traders are bracing for market volatility, waiting to see if Powell folds or holds firm.
Powell’s Inflation Warning Sends Shocks Through Crypto Market
During a recent speech, Powell said tariffs could push inflation higher and hurt economic growth. This creates a policy headache—how to balance inflation control with job support. He made it clear: the Fed won’t move until it sees more clarity. But clarity may be hard to come by if tariffs keep disrupting global trade.
Crypto investors are not waiting around. Powell’s remarks added pressure on already weak altcoins. Coins like Mantra and Pi Network have seen steep drops. Both face bearish signals due to external economic forces and internal supply issues. Traders now worry that persistent inflation will keep the Fed from making the rate cuts Trump is demanding.
Crypto Market Eyes Rate Cuts Amid Political Pressure
Trump isn’t just throwing punches—he’s setting the stage for monetary policy drama. By comparing Powell to the European Central Bank, which recently slashed rates, Trump is urging the Fed to follow suit. He argues the Fed is behind the curve and hurting the economy. If Powell gives in, it could trigger a bullish wave in the crypto market.
The crypto market thrives in low-rate environments. Cheaper money fuels risk-on sentiment, helping Bitcoin and altcoins rise. But if Powell resists the pressure, uncertainty will rule. Either way, Trump’s aggressive tone is stirring up the market. The crypto community is divided—some see opportunity, others see danger.
Top Altcoins at Risk
As macro pressure grows, some altcoins are flashing major warning signs. Mantra (OM) has collapsed 92% from its recent peak. Its RSI is low, and trend indicators point further down. Pi Network (PI) faces a supply flood, with millions of new tokens unlocking soon. That’s pushing prices lower, as sellers outweigh buyers.
Even the TRUMP meme coin isn’t safe. Despite carrying the former president’s name, it’s been hit by negative funding rates, showing weak demand. Inflation fears and Fed uncertainty make these altcoins riskier than ever. Traders are offloading these names as they search for safer plays in a choppy crypto market.
Crypto Market Outlook
The battle between Trump and Powell is far from over. With Trump pushing for immediate action and Powell holding steady, the tension could impact everything from interest rates to altcoin performance. Tariffs, inflation, and rate policy are now key drivers for crypto.
Bitcoin and major altcoins may benefit if rate cuts happen. But until then, the market stays in limbo. Watch Powell’s next move closely—it could be the spark that sets off the next crypto market rally or crash.
