- Donald Trump has repeatedly criticized the U.S. Federal Reserve and its chair, Jerome Powell, impacting Bitcoin, crypto, and stock markets.
- The price of bitcoin has reached all-time highs recently, with the total crypto market passing $4 trillion.
- A close Trump ally, Larry Kudlow, predicted Trump would “take over” the Fed, potentially disrupting global financial markets.
- Speculation over Trump removing Powell as Fed chair has increased uncertainty, but predictions of this action have decreased in probability.
- The Federal Reserve is expected to lower interest rates soon, which many think could further boost bitcoin and crypto markets.
Donald Trump heightened tensions with the U.S. Federal Reserve this year, voicing sharp criticism of chair Jerome Powell. These comments have affected prices and confidence in bitcoin, cryptocurrency, and the stock market.
The value of bitcoin recently hit a record high, raising the total crypto market value to over $4 trillion USD. This increase happened as more investors entered the market, with some describing it as “crypto floodgates are starting to open.”
Larry Kudlow, a former top advisor to Trump, told the New York Post that, “President Trump’s going to take the Fed over, as he should.” Kudlow referred to ongoing arguments between Trump and Powell over interest rate decisions, which have led to accusations of political bias. In one event last year, Powell raised interest rates by 0.5 percentage points, surprising the markets. Some observers saw this move as supporting Trump’s rivals.
Earlier this year, Trump raised the idea of removing Powell from office before the end of his term, raising concerns about the political independence of the Federal Reserve. On the crypto prediction platform Polymarket, the odds of Trump “removing Powell” have fallen to 5% after peaking at 20% last July.
Since then, Trump has attempted to remove Fed governor Lisa Cook and installed Stephen Miran, described as a bitcoin supporter, as a temporary governor.
David Morrison, a senior market analyst at Trade Nation, said in comments sent by email,
“What investors appear to be overlooking is president Trump’s continued meddling in the [Fed’s] affairs, thereby threatening its independence. This could end up being a far more serious issue.”
This week, the Federal Reserve is expected to lower interest rates in response to a weaker job market, even as inflation remains a concern. Many bitcoin traders believe rate cuts will push the price of bitcoin higher by encouraging more cash flow in the economy.
The price of bitcoin and the overall crypto market has risen over the last week, with bitcoin up 5%, as investors anticipate a more supportive direction from the Federal Reserve.
✅ Follow BITNEWSBOT on Telegram, Facebook, LinkedIn, X.com, and Google News for instant updates.
Previous Articles:
- Coinbase Hacker Wallet Buys $18.9M in Ether Amid Price Surge
- FBI Warns of Salesforce Data Breaches by UNC6040, UNC6395 Groups
- Rio to Host First Permanent BRICS Headquarters in 2025
- SEC Chair Atkins Vows Clear Crypto Rules, Launches ‘Project Crypto’
- US Government Likely to Form Strategic Bitcoin Reserve by 2024 End
