The President of the United States has called for the resignation of Jerome Powell, Chairman of the Federal Reserve, intensifying the ongoing conflict over interest rates.
Reasons for Trump's Demands
The President claims that the current high interest rates are negatively affecting the economy, making it difficult to refinance government debt. He urges a reduction of rates to 1% and argues that the Fed's policies are causing significant financial losses.
Long History of Conflict
The conflict between Trump and Powell has been ongoing for several years. Trump has repeatedly criticized Powell for being slow to act and for not appropriately responding to economic conditions. At the recent FOMC meeting on June 18, the Fed decided to keep interest rates steady at 4.25% - 4.5%. Powell explained his decision due to uncertainty surrounding tariffs.
Impact on the Cryptocurrency Market
This conflict may also affect the cryptocurrency market. A cut in interest rates could lead to increased investments in cryptocurrencies. Currently, the market capitalization of cryptocurrencies stands at $3.36 trillion, with Bitcoin and Ethereum showing price increases. Investors are hopeful for rate cuts in the second half of the year, but current uncertainties are keeping them on edge.
The Trump vs Powell conflict touches not only the economy but also financial markets. Future decisions from the Fed could significantly alter the financial landscape of the country and the cryptocurrency market.
