Trump Urges Fed to Cut Rates Amid Inflation Drop

2 mins mins

Key Points:

Donald Trump urges interest rate cut, citing falling inflation.
Calls for Powell to act quickly, improving Fed image.
Cryptocurrencies might gain in a low-rate environment.

Trump’s statement suggests a strategic pressure on Powell amidst decreased interest rates, potentially sparking shifts in U.S. monetary policy. The response, if considered, could influence not just traditional financial markets but also digital assets like cryptocurrencies.

Former U.S. President Donald Trump has publicly urged Federal Reserve Chairman Jerome Powell to reduce interest rates, citing economic improvements, including decreased inflation and energy prices. Trump’s remarks follow recent economic data showing inflationary pressures easing. Trump has stated, “Jerome Powell is always ‘late,’ but quick action could improve his image.”

Potential Impact on Markets and Cryptocurrency Volatility

Trump urged for an interest rate cut during a statement, emphasizing that the current economic climate is optimal for such a move. He expressed criticisms towards Powell, stating the Fed Chair has a history of delayed responses.

The potential rate cuts could boost market liquidity and lower borrowing costs, with equities and cryptocurrencies potentially benefiting. Market analysts predict that these conditions might stimulate increased investment in risk assets like Bitcoin. This viewpoint aligns with insights from the 2025 Crypto Policy Outlook by Grant Thornton.

Market reactions remain mixed. Some see an opportunistic market climate, while others warn of the political implications affecting long-term policy credibility. Key economic figures remain cautiously optimistic but stress a data-driven approach.

Historical Context, Price Data, and Expert Insights

Did you know? After the 2019 rate cut, cryptocurrencies, including Bitcoin, experienced increased inflows due to elevated risk appetite among investors.

As of April 5, 2025, Bitcoin (BTC) is priced at $82,977.63, with a market cap of $1.65 trillion. Despite a 1.16% decline in 24 hours, Bitcoin remains dominant at 61.96%. This market data is sourced from CoinMarketCap.

bitcoin-daily-chart-171 — Bitcoin(BTC), daily chart, screenshot on CoinMarketCap at 20:37 UTC on April 5, 2025. *Source: CoinMarketCap*

The Coincu research team highlights potential for increased cryptocurrency volatility due to interest rate changes. Historical patterns suggest rate cuts often lead to a surge in digital asset trading, supported by declining bond yields and investors seeking higher returns. For expert insights, see Trump’s crypto policy updates and announcements.