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$ETH #TrumpVsPowell Key Issues in the Conflict: 1. Interest Rates Dispute: Trump repeatedly criticized Powell for keeping interest rates "too high," arguing it was hurting the U.S. economy and stock market. 2. Pressure on the Fed: Trump broke from tradition by publicly pressuring the Fed to cut rates and stimulate economic growth—something that compromised the Fed’s image of independence. 3. Fed’s Independence: Powell maintained that the Fed's decisions are based on data, not political pressure, striving to uphold its credibility and long-term economic stability. 4. Dollar Strength: Trump wanted a weaker dollar to boost exports, but the Fed's policies often led to a stronger dollar, frustrating Trump. --- Potential Effects on the Crypto Market: 1. Weakened Confidence in Traditional Financial Systems Public disputes between the executive branch and the Fed can erode trust in fiat monetary policy. This may drive investors toward decentralized assets like Bitcoin and Ethereum as a hedge against political and financial instability. 2. Impact on Interest Rates and Inflation If Powell resists political pressure, higher rates may continue, which can tighten liquidity and suppress crypto prices. If political pressure wins and rates are cut, inflation fears may rise, making crypto—especially Bitcoin—a more attractive inflation hedge. 3. Regulatory Uncertainty Trump’s past policies were generally anti-regulation toward crypto. If Trump returns to office, markets may expect a more pro-crypto stance, potentially boosting prices. Powell, however, has supported regulatory clarity in financial markets, which could create tension if views diverge sharply. 4. Market Volatility Conflicts between key figures like Trump and Powell increase economic and policy uncertainty, which often leads to higher volatility in both traditional and crypto markets.
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#TrumpVsPowell $TRUMP Trump's Criticism of the Fed Trump believes there's "essentially no inflation," criticizing the Fed's stance. However, the Fed raised rates in 2022-2023 to combat inflation, which dropped from 9.1% to 2.4%. The Fed even cut rates three times at the end of last year. Uncertainty Over Trump's Tariffs The Fed is keeping rates on hold due to uncertainty over Trump's proposed tariffs, including a 10% tax on all imports and a 145% levy on Chinese imports. Powell stated that tariffs would likely worsen inflation, and the Fed needs greater clarity before making moves. This uncertainty has led the Fed to wait, as Trump's trade policies could significantly impact the economy. With inflation near the 2% target, the Fed's decision hangs in the balance. $TRUMP
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