President Trump once again targeted Federal Reserve Chairman Jerome Powell, accusing him of delaying rate cuts and harming the housing market. With mortgages, interest rates, and even cryptocurrencies caught between two shores, what is really at stake?

Is Powell Harming the Housing Market?

In a recent post on Truth Social, Trump criticized Powell, claiming he is strangling the housing market. With inflation under control, he said every sign points to a significant rate cut. "It's too late, it's a disaster," he added.

James Fishback, CEO of investment firm Azoria, also expressed concerns about the Fed's policy, noting that last year, mortgage rates skyrocketed as the market expected the Fed to cut rates more than it actually did.

This time, he stated that future interest rates hardly reflect any moves from the Fed. With inflation at its lowest in four years, a six-month year-on-year CPI of 1.9%, Fishback believes it is time for a significant rate cut to lower mortgage rates and support homebuyers. He claims there will be a 100 basis point rate cut next month to compensate for the cut that was not implemented earlier this year.

Will the Fed Cut Rates?

According to data from the CME Fed Tracker, there is currently an 83% chance that interest rates will be reduced to 400-425 basis points. Recently, this likelihood has jumped nearly 100%, with some traders even betting on a 50 basis point cut. This decrease indicates increasing instability ahead of mixed signals from the economy.

All Eyes Are on Powell's Speech, FOMC Meeting Minutes

Trump's criticisms came ahead of Fed Chairman Powell's speech at the Jackson Hole symposium, where investors will closely monitor signals regarding the economy and the possibility of rate cuts. The Fed's next meeting is scheduled for September 16-17, and while most predict a modest cut of 0.25%, Treasury Secretary Scott Bessent is pushing for a 0.5 basis point cut.

However, some analysts warn that a rate cut in September is uncertain. Inflation remains above the Fed's 2% target, and rising prices due to tariffs are creating additional pressure. The release of the FOMC meeting minutes today will provide more insight into the Fed's recent discussions on policy, inflation, and the economy.

The Cryptocurrency Market Shifts to a Downtrend

The cryptocurrency market is sharply down today as Bitcoin falls below $114,000 and Ether drops below $4,200. Major altcoins also saw declines, while cryptocurrency-related stocks like MARA, COIN, and MSTR even dropped more significantly.

Data from Santiment shows that retail traders have shifted to a strong pessimistic sentiment after Bitcoin fell below $113,000, marking the most negative sentiment since June. Historically, such extreme fear can signal a buying opportunity for patient traders, as the market often moves contrary to the crowd.

Will Q4 Grow?

Not everyone is pessimistic. Investor Ted Pillows noted that most investors are trying to sell too early in this cycle, which could cause them to miss the next big bull run. He sees Bitcoin continuing to grow in Q4, with global liquidity increasing and expectations that the Fed will cut rates, pushing BTC above $160,000.

With Powell's speech and the Federal Open Market Committee (FOMC) meeting minutes approaching, cryptocurrency traders are very anxious. Next week could determine whether the market will explode into a new bull run or continue to suffer further losses.