#TrumpBTCTreasury Trump Confirms Imminent Fed Decision—Bitcoin And Crypto Brace For Huge Price Earthquake
"It’s coming out very soon," Trump told reporters on Air Force One, it was reported by Reuters, referring to his pick for the next Fed chair.
“If we had a good Fed chairman, he would lower rates and if inflation happened in a year from now or two years later, [he would] raise rates,” Trump said in a video posted to X, reiterating his earlier calls for Fed chair Powell to cut interest rates immediately.
The Federal Reserve is now overwhelmingly expected to keep rates on hold during its June and July meetings, with the market split over its September decision, according to the CME FedWatch tool.
Trump added that former Fed governor Kevin Warsh, who’s currently the front-runner to be named as next Fed chair on the crypto-powered prediction platform Polymarket, is “very highly thought of,” when asked what he thought of him.
Last month, Warsh outlined how he believed the Fed could lower interest rates if he shrunk its balance sheet, telling a monetary policy panel at Stanford University’s Hoover Institution that "if the printing press could be quiet, we could have lower policy rates."
If the Fed were to cut rates, it “would be bullish for risk assets like bitcoin,” bitcoin price and crypto market analysts with the Bitfinex exchange said in emailed comments.
“We believe if bitcoin maintains support above $105,000, it could target the $120,000 to $125,000 range in June. This will not be catalysed just from the labour market but it could be a domino in multiple catalysts prompting the Fed to cut rates at a faster than expected pace.”
This week, Trump again called for Powell to lower rates, which have been held steady for months after the Fed surprised markets by beginning its rate cutting cycle in September.
The Fed has pointed to the looming impact of Trump’s global trade tariffs as the reason it has left rates on hold, predicting Trump’s so-called Liberation Day barrage of tariffs will cause inflation to spike.
