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Trump’s Economic Aide Pushes Fed Talks – Next Crypto Boom?

Arry Hashemi
Arry Hashemi
Feb. 17, 2025

President Donald Trump’s top economic advisor, Kevin Hassett, plans regular meetings with Federal Reserve Chair Jerome Powell, sparking speculation about potential interest rate cuts. Lower interest rates historically benefit Bitcoin and other cryptocurrencies by increasing liquidity, making borrowing cheaper, and encouraging investment in high-risk assets. A weaker U.S. dollar could also make Bitcoin a stronger hedge against inflation, while investors may shift away from traditional assets toward crypto and stocks.

Jerome PowellHolding regular meetings with Federal Reserve Chairman Jerome Powell is a top priority for Kevin Hassett, President Donald Trump’s chief economic advisor. [Image Source: Getty Images]

Lower Interest Rates Could Ignite Bitcoin and Risk Assets

In a move that could reshape financial markets and economic policy, President Donald Trump’s top economic advisor, Kevin Hassett, has announced plans to hold regular discussions with Federal Reserve Chairman Jerome Powell. These meetings mark a significant shift in White House-Fed relations, raising questions about potential policy adjustments that could influence everything from stock markets to cryptocurrencies.

With interest rate cuts already a major topic of debate, these discussions could increase pressure on the Fed to consider a looser monetary policy—a move that has historically triggered massive rallies in risk-on assets, including Bitcoin, Ethereum, and other digital currencies. Lower interest rates tend to increase market liquidity, making it easier and cheaper for investors to borrow capital for speculation and investment, often fueling price surges in stocks, real estate, and crypto markets.

Traders and analysts will be watching closely for any signals from Powell and Hassett that could indicate a shift in the Fed’s stance, as even a hint of rate cuts could send Bitcoin and other risk assets soaring.

TrumpTrump has consistently opposed the Federal Reserve’s high interest rates, claiming they stifle economic growth. [Image Source: Shutterstock]

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.