Trump Calls for Interest Rate Cut to 1%, What Do You Think?
On July 15, 2025, local time, U.S. President Trump intensified his criticism of Federal Reserve Chairman Powell, stating, "Our Federal Reserve Chairman is terrible," and suggested that U.S. interest rates should be below 1%.
Previously, Trump had also repeatedly called for interest rates to be around 1%. For example, on June 21, he posted on social media that Powell should make the "biggest and best contribution" to America by cutting interest rates, claiming that reducing rates to 1% to 2% could save the U.S. up to $1 trillion annually.
Trump's call for a 1% interest rate cut is primarily motivated by the desire to reduce debt interest expenses and promote economic growth. He believes that lowering interest rates could reduce the costs for the U.S. government to raise funds. At the same time, implementing loose monetary policies could support tax cuts and revive manufacturing, lower investment and financing costs, and serve as a key means to drive economic recovery, highlighting his accomplishments.
Dual Catalysts for Policy
• Trump calls for a 1% interest rate cut to create a loose monetary environment
• Three key cryptocurrency bills are advancing: The "GENIUS Act" regulates stablecoins, the "CLARITY Act" clarifies regulatory responsibilities, and the "Anti-CBDC Act" restricts government digital currency
• The combined policy effects may provide strong growth momentum for Bitcoin and the cryptocurrency market
Market Impact and Investment Opportunities
• Investment Shift: Institutional funds are moving from low-yield government bonds to Bitcoin ETFs, with spot inflows increasing by 47%
• Altcoin Rally: High-beta assets like Solana may see a 20-30% increase
• Derivatives Market: BTC funding rate reaches 0.045%, but caution is needed before the Federal Reserve's decision on July 30 due to volatility
With clear regulations and dual drivers of monetary easing, the cryptocurrency market may welcome a new round of upward cycles, but caution is advised before policies are implemented.