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Highlights
- Donald Trump urges Powell to cut rates, citing job growth & lower inflation as signs of economic recovery.
- Trump's tariffs spark China retaliation, sending Bitcoin down 3% to $82,022 amid global market turmoil.
- Rising tariffs could hurt U.S. growth, as Powell warns of stagflation risks; crypto market reacts with volatility.
US President Donald Trump has urged Federal Reserve Chairman Jerome Powell to start cutting interest rates, saying it is the ideal time to do so. In a recent social media post, Trump accused Powell of “playing politics” and emphasized that lowering rates now could help improve the U.S. economy.
Notably, this latest call for trimming the monetary rates comes amid rising concerns about his tariff policies.
Donald Trump Criticism of Jerome Powell’s Timing
In his latest post, US President Donald Trump has once again criticized Jerome Powell’s handling of monetary policy. He noted that Powell had been “late” in taking action in the past but now had the chance to act quickly to improve his image. “This would be a PERFECT time for Fed Chairman Jerome Powell to cut Interest Rates,” Trump wrote, listing several favorable economic indicators as reasons why the rate cut is necessary.
Donald Trump noted that the rate of inflation has decreased in recent times, employment has increased, and some basic commodities, including eggs, have become cheaper.
The best part of his comments aligns with other attempts to decrease pressure on the American pocket. Because of this , Trump has encouraged Powell to reduce the rates of interest in order to bring about further growth seeking to sustain a positive trend. “CUT INTEREST RATES, JEROME, AND STOP PLAYING POLITICS,” Trump said more assertively, pointing to the need to take action.
Effect of Trump’s Tariffs on Global Markets
The demand for rate cuts by Donald Trump is coming at a time when his aggressive policies on trade are disrupting the international markets. The most recent tariff measures imposed in the Trump administration have stirred concern that may lead to an increase in inflation rates and dampening of economic growth rates. Moreover, Jerome Powell, the chair Federal Reserve of the united states has stated that Donald Trump’s tariffs may be more damaging to the economy than previously anticipated.
Jerome Powell, for instance, in a recent speech, stated that there is the risk of stagflation, which means weak growth in the economy and high inflation brought on by trade tensions. The current tariffs that were implemented by Trump include a 10% base tariff on every country and other supplementary tariffs, which have elicited countermeasures from other countries, particularly China.
Consequently, financial markets remain susceptible, and cryptocurrencies such as Bitcoin are affected poorly by increasing trade tensions. Despite these concerns, Bitcoin has shown some resilience, with investors watching closely to see how the cryptocurrency will fare in this challenging environment.
Bitcoin’s Resilience Amid Market Volatility
Despite the setback in the financial markets occasioned by Donald Trump’s tariff policies, Bitcoin has been relatively resilient. Recently, the price of Bitcoin stayed at $80,000 even as other risk assets continued to experience a sell-off.
This has come as a shocker to many people especially because Bitcoin is normally associated with more risk assets. James Seyffart, a Bloomberg analyst, said that he was pleasantly shocked that Bitcoin did not collapse, as many expected. He said:
“Genuinely shocked a bit by Bitcoin’s resilience. Would not have guessed it would hold above $80k in this type of broader market selloff of risk assets.”
Not even gold, the once considered traditional safe haven asset, has not been spared losses during this period. The mere fact that Bitcoin has held its trend among these declines has prompted analysts to begin talking about its’s potential as a viable alternative asset class.
Experts Weigh In On Trump Tariffs Impact
While some people have been optimistic about the future of Bitcoin and its potential to rebound, others, including researcher Julio Moreno, have pointed out that Donald Trump’s tariff policies could lead to significant damage in the economy and the cryptocurrency market as well.
Moreno said Trump’s tariffs would be detrimental to the US and Bitcoin in the long term. He stressed, that the volatility, which can be the result of these actions, may overshadow any positive consequences.
On the other hand, figures like Michael Saylor have been vocal in their support of Bitcoin as a hedge against economic instability. Saylor, Strategy Chairman, recently posted on 𝕏, “Divorce Risk. Marry Bitcoin.” His statement reflects the growing belief that Bitcoin can offer a safe alternative in times of financial uncertainty, despite the current market turbulence.
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