Trump calls for interest rates to be lowered to 1%. What do you think?

On July 15, 2025, local time, U.S. President Trump intensified his criticism of Federal Reserve Chairman Powell, stating that "our Federal Reserve Chairman is terrible" and that U.S. interest rates should be below 1%.

Previously, Trump had also repeatedly called for interest rates to be lowered to around 1%. On June 21, he posted on social media that Powell should make the "biggest and best contribution" for America by lowering interest rates. If rates were lowered to 1% to 2%, it could save the U.S. up to $1 trillion each year.

Trump's call to lower interest rates to 1% is primarily based on considerations such as reducing debt interest expenses and promoting economic growth. He believes that lowering interest rates can reduce the cost for the U.S. government to raise funds. At the same time, implementing a loose monetary policy can support tax cuts and revive manufacturing, lower investment and financing costs, and serve as a key means to drive economic recovery, showcasing his political achievements.

Policy Dual Catalysts

• Trump calls for interest rates to be lowered to 1%, creating a loose monetary environment

• Three key cryptocurrency bills are being advanced: The "GENIUS Act" regulates stablecoins, the "CLARITY Act" clarifies regulatory responsibilities, and the "Anti-CBDC Act" restricts government digital currencies

• The combined policy effect may provide strong growth momentum for Bitcoin and the cryptocurrency market

Market Impact and Investment Opportunities

• Investment shift: Institutional funds are moving from low-yield government bonds to Bitcoin ETFs, with spot inflow increasing by 47%

• Altcoin rebound: High beta assets like Solana may see a 20-30% increase

• Derivatives market: BTC funding rate reaches 0.045%, but caution is needed before the Fed's decision on July 30 due to volatility

Under the dual drivers of regulatory clarity and monetary easing, the cryptocurrency market may welcome a new round of upward cycles, but cautious operation is required before policies are implemented.