Trump calls for a 1% interest rate cut, Powell firmly resists! How should the cryptocurrency community view this?
Recently, Trump has been vocal, aggressively pushing for "ultra-low interest rates below 1%", stating that he wants to eliminate high interest rates and return the Federal Reserve to "money printing mode" upon taking office. Many cryptocurrency investors have begun to fantasize: Is massive liquidity about to return? Is the season of copycats approaching? But - the reality is far from simple.
Powell firmly responds: The independence of the central bank is not something you can just alter!
Trump's calculations are clear: low interest rates + tax cuts + creating inflation to stimulate the stock market and increase cryptocurrency assets. However, the Federal Reserve is not the Treasury Department; Powell has just emphasized in public again that the independence of monetary policy is unshakable. The president has no authority to fire him due to "policy disagreements", unless Powell is found to be "seriously derelict", but there is currently no evidence for that.
More critically, even if Trump regains power next year, the FOMC voting structure will still be hawkish, and changing the chair does not equate to being able to inject liquidity directly.
Do you think changing the chair will make the cryptocurrency market bullish? The real obstacle is the FOMC structure!
The cryptocurrency market is never a game where one can become rich solely based on positive expectations; it requires a patient holding of assets after recognizing the structure and rhythm.
