In June 2025, Trump unleashed on social media again - this time targeting Federal Reserve Chairman Powell: "Europe has cut rates 10 times, and we haven't done it once! The economy is clearly doing well, and inflation is nowhere to be seen. What is this 'Mr. Too Late' waiting for?"
Since taking office in January, Trump has publicly called on Powell to cut rates at least 17 times, calling him 'stupid' and 'thick-headed', even threatening to fire him. But the Federal Reserve is like a tough nut, refusing to budge.
Why is Trump so anxious?
Tariff aftereffects: The tariffs he imposed himself have raised import costs, and businesses are crying out in pain. Cutting rates can temporarily relieve pressure.
Debt burden: The U.S. government has to pay $776 billion just in interest each year; a 2-point cut could 'save' $600 billion - although economists scoff: reckless rate cuts may backfire.
Stock market KPI: Trump views the U.S. stock market as a report card; rate cuts = liquidity = rising stock prices, and he understands this better than anyone.
Why doesn't Powell buy it?
The Federal Reserve's reasoning is very hardcore:
The unemployment rate is stable at 4.5%, wages are still rising, and the economy is not in recession at all;
Inflation has indeed come down, but businesses are stocked full of high-priced imported goods, which could rebound at any time;
Powell has made it clear: 'Wait until we see the data before acting; we can afford these few months!'
What should the crypto community do?
Short-term: Don't be swayed by Trump's rhetoric; the Federal Reserve is determined to hold out until September or even later, and market liquidity won't change significantly in the short term.
Mid-term: A rate cut will come sooner or later, but don't expect a flood of liquidity - the Federal Reserve has learned its lesson and is wary of inflation making a comeback. Hold some cash and wait for the real rate cuts to buy the dips in BTC, ETH, and other solid assets.
Long-term: The U.S. government debt is a ticking time bomb; just because it hasn't exploded yet doesn't mean it's safe forever. Allocate some Bitcoin as insurance, after all, this thing doesn't follow the Federal Reserve's playbook.
The last truth:
Politicians need votes, central banks care about their reputation, and we who trade cryptocurrencies just want to make money. Remember - the more entangled the Federal Reserve is, the more turbulent the market becomes, and opportunities hide in the cracks.
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