In July 2025, U.S. President Donald Trump exerted pressure on Federal Reserve Chair Jerome Powell, influencing interest rate decisions and causing volatility in financial and cryptocurrency markets.
Trump Pushes Fed for Interest Rate Cuts
Federal Reserve Chair Jerome Powell is experiencing uncommon executive pressure to adjust interest rates related to President Trump's tariff policy agenda. Trump's direct engagement marks a departure from previous Federal Reserve independence. Powell noted:
> "Facing direct engagement from President Trump tied to tariff policy, this situation marks a departure from standard Fed independence."
Crypto Markets React as Bitcoin, Ethereum Slide
The crypto markets, particularly Bitcoin (BTC) and Ethereum (ETH), faced downward pressure, recording a decline of approximately 4% and 3% respectively, as confidence wavers amid policy changes. Institutional investors proceed with caution. The executive intervention has broadened market uncertainty, potentially weakening central bank independence.
2025 Mirrors 1990s Fed Political Pressures
The 2025 situation mirrors historical precedents from the early 1990s, where political pressures influenced Fed actions, albeit less directly than the current scenario. Previously, such tensions led to significant market volatility. Potential outcomes suggest cautious optimism as institutional investors focus on large-cap tokens like BTC and ETH despite perturbed sentiment.
Thus, Trump's pressure on the Federal Reserve raises questions about political interference in the economy, impacting decisions and investor sentiment in the cryptocurrency market.
