Trump is pushing the Federal Reserve to cut interest rates immediately — could cryptocurrencies be the biggest beneficiaries?
Former US President Donald Trump has once again shaken up the macroeconomic table — this time by criticizing the Federal Reserve for its hesitation to cut interest rates. In a recent post on Truth Social, Trump pointed out that Europe has already implemented 10 rate cuts, while the United States is still lagging behind.
"There is no longer any inflation," Trump wrote, noting that the Federal Reserve has no good reason to delay. "And if inflation returns, the Federal Reserve can simply raise rates again."
Trump argues that the United States is currently paying too much for borrowing costs, which is hurting growth and competitiveness. His public push comes ahead of the Federal Reserve's next policy meeting on June 18, where analysts overwhelmingly expect no changes to the current interest rate range of 4.25% to 4.50%.
According to the CME Group's FedWatch tool:
97.5% of traders believe that the Federal Reserve will remain steady in June.
However, more than 51% now expect a cut of 25 basis points by mid-September.
🚨 But what happens if the Federal Reserve cuts rates earlier than expected?
According to CMC Markets analyst Carlo Brocchino, the cryptocurrency market may be the first to respond:
"If the Federal Reserve changes its policy early, expect Bitcoin and some altcoins to react quickly first."
With inflation declining and political pressure increasing, accelerating rate cuts could lead to a drastic change in risk appetite — especially in the cryptocurrency sector, where liquidity is king.
