Just hours before the Federal Reserve's meeting, conflict arose regarding interest rate policy. President Donald Trump criticized Fed Chair Jerome Powell.
Trump’s Statements on the Fed
On the South Lawn of the White House, Trump called Powell "stupid" and stated that the central bank "probably won’t cut rates today." He accused the Fed of keeping borrowing costs too high, costing the U.S. economy billions. "He’s a political guy who’s not smart, but he’s costing the country a fortune."
Current Interest Rate Situation
The Fed currently holds interest rates in the range of 4.25% to 4.50%. Most experts believe that there will be no changes during today’s meeting. Data from the CME FedWatch tool shows a 99.9% chance that rates will stay the same.
Cryptocurrency Market and the Fed's Impact
Bitcoin is trading at $104,873. Trump noted that any decision from the Fed could swing Bitcoin significantly. If Powell sounds tough on inflation, Bitcoin could drop below $100,000, while hints at future cuts might push it above $110,000.
Investor expectations are tied to the outcomes of the Fed's meeting and the market's reaction to potential policy changes.
