Recent statements by Donald Trump hint at potential changes in Fed leadership and their impact on the cryptocurrency market.
Potential Fed Chair Shake-Up
Trump expressed strong determination in his recent statements, suggesting that Jerome Powell is under political pressure. Rumors claim Trump has been contemplating firing Powell for months. However, this does not imply immediate action; he could wait until Powell's term expires next year.
Possible Surge in Cryptocurrency Prices
Even if Trump cannot dismiss Powell, his pressure could compel the Fed Chair to initiate interest rate cuts, especially if politically motivated. During the 2019 trade war, Trump similarly criticized Powell for not reducing rates swiftly enough.
Trump's Strategies for Rate Cuts
Trump desires rate reductions and is employing various strategies, including threats to remove Powell, to ensure this occurs without delay. Given the Fed's comments on inflation in 2021 and their delayed actions last year, recent hawkish statements may not warrant serious consideration.
Trump's influence on monetary policy and the cryptocurrency market may be significant, making it essential to closely monitor his actions and statements.
