Donald Trump criticizes Jerome Powell on social media, urging for interest rate cuts. Trump's call for rate cuts may impact financial markets, including cryptocurrencies.
Donald Trump has used his social media platform to harshly criticize Jerome Powell, the Chairman of the Federal Reserve, calling him a "fool" and blaming him for costing America "billions of dollars." As Trump stated, "It's too late, Mr. Powell is the worst, he is truly a fool, costing America billions of dollars!"
Trump pressures Powell to resign or cut interest rates
Trump's call for Powell to cut interest rates or resign reflects the views of the regulators at Fannie Mae and Freddie Mac. This highlights potential changes in U.S. monetary policy.
Market reactions to these calls include discussions about potential impacts across financial markets. Analysts note that interest rate cuts could stimulate activity in the mortgage market, while cryptocurrency assets like Bitcoin and Ethereum could also be affected.
Potential changes in the cryptocurrency market following Trump's comments
Did you know? In previous cycles, Trump's public criticisms of monetary policy often coincided with volatility across both traditional and cryptocurrency markets, reflecting changes in liquidity expectations.
According to CoinMarketCap, Bitcoin (BTC) is currently trading at $105,110.13 with a 24-hour trading volume decrease of -8.63%. Although its price has decreased by -0.33% over the past day, it has increased by 24.36% over the past 90 days, positioning it as a key factor in the ongoing market dynamics.
As Bill Pulte from the Federal Housing Finance Agency emphasized, "The regulators of Fannie Mae and Freddie Mac have called for Federal Reserve Chairman Jerome Powell to resign on Wednesday if he does not cut..."
The research team believes that the financial outcomes from Trump's criticisms could recalibrate investor expectations. Historical trends show that dovish signals from the Federal Reserve often lead to increased activity in high-risk markets like cryptocurrency assets.
