Crypto Market Poised for Surge as Trump Slams Fed’s Rate Cut Strategy

fed's rate cut

Fed’s rate cut plans are back in the spotlight after sharp criticism from former President Donald Trump, reigniting optimism across the crypto market. His remarks targeting Federal Reserve Chair Jerome Powell’s monetary strategy have stirred fresh excitement among crypto investors.

Trump’s pro-crypto stance, combined with his call for lower interest rates, is being seen as a potential catalyst for a bullish momentum. Let’s dive into how his push for the Fed’s rate cut could influence digital assets and fuel a strong rally in the coming weeks.

Trump Criticizes Fed Chair: Possible Crypto Market Reaction

In a recent Truth Social post, Donald Trump criticized Federal Reserve Chair Jerome Powell’s stance on interest rate cuts, calling his decisions “too late and wrong.”

Trump’s support for the Fed’s rate cut has fueled speculation of a crypto market rally. While the market remains steady for now, leading cryptocurrencies show signs of upward momentum. If the Fed lowers rates in response, a bullish trend may follow.

Why Is Trump Criticizing the Fed?

Trump’s latest remarks came shortly after Jerome Powell’s speech at the Economic Club of Chicago, which caught the attention of crypto markets. Powell highlighted the pressure tariffs have placed on the Federal Reserve, forcing it to navigate between managing inflation and supporting economic growth. The Fed, he said, is currently taking a cautious stance, waiting for clearer economic signals before adjusting policy.

Powell noted:

“If that were to occur, we would consider how far the economy is from each goal, and the potentially different time horizons over which those respective gaps would be anticipated to close.”

Trump responded by dismissing the report, calling it “another, and typical, complete mess.”

Trump Urges Fed to Cut Rates: What’s Next for the Market?

Donald Trump has renewed his criticism of the Federal Reserve’s delayed action on interest rate cuts, stirring discussions across financial and crypto sectors. Referring to the European Central Bank’s recent move, which marked its seventh rate cut, Trump emphasized that the Fed should have acted sooner.

The ECB recently slashed its deposit rate by 25 basis points to 2.25%, while also reducing the main refinancing rate to 2.4% and the marginal lending rate to 2.65%.

Pointing to these changes, Trump argued the Fed is lagging and urged immediate action, stating, “He should certainly lower them now.”

Trump Demands Powell’s Removal, Crypto Market on Edge

While Donald Trump has often voiced his disapproval of Jerome Powell’s monetary approach, he has now openly demanded the Fed Chair’s dismissal. “Powell’s termination cannot come fast enough,” Trump declared.

The crypto market remains uncertain in its response, though analysts expect possible volatility ahead. Whether Powell will adjust interest rates remains unclear, but Trump’s remarks could influence investor sentiment and market direction.

Disclaimer
The information provided in this article is for informational purposes only and reflects the author’s opinion. It should not be construed as financial, legal, or investment advice. The cryptocurrency market is volatile and carries risks. Please conduct your own research before making any decisions.

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