Trump vs. the Fed: The Power Struggle Over Interest Rates
Trump has long been a vocal critic of the Federal Reserve’s high interest rates, arguing that they hurt economic growth. He has repeatedly pressured the Fed to slash rates, believing that cheaper borrowing fuels business expansion, stock market rallies, and economic dominance.
Now, with his economic team planning direct and frequent talks with Powell, speculation is growing that the Fed could pivot toward rate cuts sooner than expected.
If that happens, the crypto market could explode.
Why Lower Interest Rates Are Rocket Fuel for Crypto
Interest rate policy is a game-changer for Bitcoin and altcoins. Here’s why:
Cheaper Credit = More Liquidity in Crypto
Lower interest rates make borrowing cheaper, which means investors have more money to put into high-growth assets like Bitcoin, Ethereum, and altcoins.
A Weaker Dollar = Bitcoin’s Time to Shine
Rate cuts devalue the U.S. dollar, making Bitcoin a more attractive hedge against inflation and currency depreciation.
Boring Bonds? Bring on the Crypto Rally
When interest rates are high, bonds and traditional assets offer better returns—driving investors away from crypto. But if the Fed cuts rates, people look for higher-yield opportunities, and Bitcoin usually wins big.
Bitcoin’s Next Move: Breakout Incoming?
Right now, Bitcoin is holding around $96,000, still below its all-time high of $108,786.
But if the Fed starts signaling rate cuts, crypto bulls could flood back into the market, pushing Bitcoin to new highs.
Final Thoughts: All Eyes on the Fed
Trump’s push for economic growth and lower rates could be the catalyst that fuels the next crypto boom.
With Hassett and Powell set for frequent meetings, markets are bracing for impact—and crypto investors are getting ready.
Will the Fed buckle under pressure and cut rates?
If so, Bitcoin and the entire crypto market could be in for a historic rally.