The debate surrounding interest rates in the U.S. is heating up amid inflation concerns and economic uncertainties. Lawmakers and the president are exerting pressure on the Federal Reserve.
Massie Reintroduces Idea to Abolish the Fed
Congressman Thomas Massie sparked renewed controversy this week by calling for the abolition of the Federal Reserve (Fed). In a social media post, he stated, "It’s absurd that one man sets interest rates for a 'free' country. End the Fed." Massie had first introduced a bill to abolish the Fed in 2024, arguing that it fuels inflation and harms savers. He brought the bill back in 2025 and also supported legislation to audit the central bank.
Will Fed Cut Rates in September?
The Federal Reserve recently decided to hold interest rates steady at 4.25% to 4.5%. Despite pressure from President Donald Trump to lower them, two Fed Governors, Christopher Waller and Michelle Bowman, opposed the decision, marking the first time since 1993 that two top officials publicly dissented. Traders are now seeing a 46% chance of a rate cut by September, down from 65% just a day earlier.
What This Means for Crypto
While the Fed's decision initially led to a dip in markets, cryptocurrency prices have since bounced back, with the total crypto market cap remaining around $3.94 trillion. Some analysts suggest that the Fed’s cautious stance could slow down the crypto bull run, as rate cuts typically bring more liquidity and investor appetite to risk assets like Bitcoin and altcoins.
The situation around interest rates and criticism of the Federal Reserve continues to resonate with the public. These events could significantly impact the economic landscape in the country and the cryptocurrency market.
