Trump Criticizes Powell, Calls for Fed Rate Reduction

U.S. President Donald Trump criticized Federal Reserve Chairman Jerome Powell after the Fed maintained interest rates between 3.5% and 3.75%, urging substantial rate cuts.

Despite Trump’s criticism, the Fed’s decision had no immediate impact on cryptocurrency markets, as financial markets remained focused on tariff-related economic factors.

President Pressures Fed Amid Economic Stagnation

U.S. President Donald Trump has criticized Federal Reserve Chairman Jerome Powell again, calling for a sharp reduction in interest rates. This action comes after the Fed’s decision to maintain interest rates between 3.5%-3.75%. Powell, who was nominated by Trump, faced criticism from the President after serving under four administrations. Despite pressure, Powell underscored that the Fed’s duty remains rooted in economic conditions rather than political demands which was echoed in his statement on January 11, 2026.

The current scenario points to a continued tension between the Trump administration and the Federal Reserve. Trump’s insistence on rate cuts links indirectly to his economic strategies, like tariff inflows.

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“I am calling for substantial rate cuts to reduce interest expenses and stimulate growth amidst tariff inflows.” — Donald Trump, U.S. President

Reactions to Trump’s pressure include strong statements from Powell asserting independence from political influences. No responses were noted from cryptocurrency leaders in major platforms. Without immediate cryptocurrency market impact, the focus remains on Trump’s broader economic actions.

Bitcoin Drops Amidst Broader Economic Tensions

Did you know? The U.S. Federal Reserve, led by Jerome Powell, has maintained interest rates within the same range despite political pressure since 2017, demonstrating resistance to align monetary policy with administrative demands.

Bitcoin (BTC) reports a trading price of $84,043.51 as per CoinMarketCap, maintaining a market cap of $1.68 trillion. Currently representing 58.74% market dominance, Bitcoin faces a 24-hour trading volume of $65.18 billion, despite a recent price drop of 5.53%. Recent data indicates consecutive declines with a 6.12% dip over the last week and a notable 23.43% decrease over the past 90 days.

Insights from the Coincu research team highlight potential avenues from Trump’s demands influencing future financial or regulatory climates. The resilience seen in current market reactions might evolve into notable shifts, especially if global economic actions reverberate further. Industry responses still show indifference in shifting cryptocurrencies, underscoring the lack of direct correlation. This highlights an ongoing analysis landscape, where sustained interest rate dynamics will serve as a key barometer for market conditions.

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Elena Zenth

30 January 2026, 01:13:53 GMT +0000

Elena Zenth is a veteran cryptocurrency journalist with over a decade of experience covering stablecoins, exchange activity, and blockchain trends. At Coincu.com, she turns on-chain data and trading insights into clear, actionable stories for everyday readers. Former contributor to CoinTelegraph, Elena is known for her bold, fact-driven journalism and investigative deep-dives exposing fraud and emerging tech in the crypto space.

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