President Donald Trump stepped up his tirade on Federal Reserve Chair Jerome Powell on Thursday, April 17, 2025, saying that Powell’s “termination cannot come fast enough.”
Powell was first chosen by Trump in 2018, and he has since complained that the Fed is reluctant to decrease interest rates, particularly in contrast to the European Central Bank’s more aggressive rate reduction.
Trump’s Comments Come Amid Economic Volatility in the US
Trump’s comments coincide with persistent economic difficulties, including market turbulence and inflation worries.
He has made it clear that he thinks the Fed’s present monetary policy is impeding economic expansion. Powell, on the other hand, has insisted that even while inflation has begun to decline, it is still higher than the Fed’s 2% target, thus rate changes must be made cautiously.
Concerns regarding the independence of the central bank and its possible effects on financial markets have been raised by the recent escalation of hostilities between the White House and the Federal Reserve.
Since any major shifts in the Fed’s leadership or policy orientation could have an effect on investment strategies and economic stability, investors are keeping a careful eye on the issue.
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Why Are Crypto Markets Hoping For Swift Rate Cuts?
Crypto markets frequently gain from lower interest rates because they encourage investors to put their money into riskier but more lucrative assets like cryptocurrency.
Both individual and institutional investors turn to alternative assets like Bitcoin, Ethereum, and altcoins when borrowing costs are low, since traditional savings vehicles provide lower returns.
Cheap financing also promotes more speculative trading and startup capital in the blockchain industry. Lower rates have the potential to devalue fiat currencies as well, supporting the idea that cryptocurrencies can protect against inflation and monetary devaluation.
In the cryptocurrency ecosystem, a low-interest rate environment fosters ideal conditions for liquidity, investment inflows, and overall market momentum.
Crypto Investors Eye Further Monetary Advancements
In anticipation of possible interest rate reductions in 2025, cryptocurrency investors are keeping a careful eye on the monetary policy of the US Federal Reserve.
Digital assets like Bitcoin and Ethereum may see a rise in demand and price as a result of this change. Lower borrowing costs might also boost the economy, which will help the cryptocurrency market even more.
The Fed has, however, indicated a cautious stance, predicting just two rate decreases this year in an effort to strike a balance between inflation management and economic growth.
This cautious approach can stifle the cryptocurrency market’s initial upward momentum. Investors, however, are still hopeful that any loosening of monetary policy would create an atmosphere that is conducive to the growth of cryptocurrencies.
Also Read: White House Insider: US Government May Leverage Tariff Income to Accumulate Bitcoin Reserve