Normally, when the economy is under pressure, people hope that interest rates are reduced so that business and investments get support. But this time, Jerome Powel who is the chairman of the U.S. Federal Reserve did not cut the rates.
On this decision, Donald Trump was not happy and was looking sad at that time when the rate was not cut. He also criticize him and called him a mad person.
One thing to keep in mind that FED rate has great impact on every financial markets specially if we talk about crypto market. Trump wants the rate to be cut on every announcement but Powell is not doing that.
Trump has officially demanded that Jerome Powell should resign. He says that Powell is damaging the economy. Trump has disagreed with the decisions of the Federal Reserve before as well, but this time his reaction was even stronger.
Regarding the crypto market too, some people think that Trump’s pressure is indirectly to support crypto. If interest rates were low, then investors would have put more money into the stock market and crypto.
Maybe Trump wants to take both the economy and crypto market higher and Powell is becoming an obstacle in his way. We all know that Trump is in favor of crypto and even launched a meme coin with the name TRUMP.
Is this just politics, or is Trump really a supporter of crypto? Time will tell. What do you think about Trump statement? Will be glad to see your answers in the comment section.
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