Trump-Powell Standoff: Why Crypto Could Be the Real Winner

Tensions rise between US President and Fed Chair Jerome Powell after the latter warned of an impending stagflation due to the tariff policies. Amidst this, social media discussions heated up on the possible implication of tariffs on the crypto market and whether the uncertainty in the traditional market pushed investors towards crypto assets.

Continuing its retaliation tactics, the US administration under Trump announced an additional 145%+ tariffs on China, triggering shockwaves across financial markets. Powell has become increasingly critical of Trump, calling his tariff policies excessive and saying they could make it difficult for the Fed to keep inflation low and support job growth.

Trump hit back, claiming that the Fed should have already cut rates (a typical practice during emergency reasons), and blamed Powell for being slow to react, even as other central banks such as the ECB have cut down rates to assist in economic recovery. However, Powell cautioned that Trump’s newly imposed tariffs, particularly the 145%+ levels on China, could lead to a dangerous economic mix of rising prices and slowing growth, a phenomenon known as stagflation

The clash escalated when Powell asserted the Fed’s independence and the legal protections around his role. Trump immediately took to social media, called him “Too Late Jerome,” and hinted at his termination.#TrumpVsPowell