U.S. President Donald Trump has once again directed his ire at Federal Reserve Chairman Jerome Powell, urging the Fed to take decisive action on interest rates.
Trump's Pressure on the Fed
On August 1st, Trump sharply criticized Powell on Truth Social for maintaining the policy rate in the 4.25-4.50 range. He called for the board to take action if Powell fails to reduce rates. Following the FOMC meeting on July 30th, Powell stated that the Fed needed to be patient and look for clearer signals before any potential rate cut in September.
Impact on Financial Markets
After Powell's comments, the likelihood of a 25 basis point cut in September, according to FedWatch data, decreased from 58% to 39.2%. Mortgage rates increased by 20 basis points as a result. The S&P 500 showed limited declines, but Powell's comments and Trump's tariff actions on July 31st led to a downturn in global markets.
Outlook for Cryptocurrencies
Bitcoin (BTC) fell 3.23% in the last 24 hours, reaching a low of $114,705, while Ethereum (ETH) dropped 6.31% to $3,600. Investors are now awaiting the employment and inflation data for August, which may further impact cryptocurrency markets.
Relations between Trump and the Fed remain tense, and fluctuations in financial markets indicate uncertainty over economic policy and its implications for cryptocurrencies.
