Trump vs. Powell: Growing tensions about tariff cuts before the FOMEC fundamental meeting
The slow conflict between former President Donald Trump and the president of the Federal Reserve, Jerome Powell, exploded once again, this time because of the Fed refusal to reduce interest rates before the next meeting of the Federal Open Market Committee (FOMC) on July 30. The dispute, which has been years in the realization, is now in the center of a heated debate on the economy of the United States, the independence of the Federal Reserve of the Federal Foundation and the future of monetary policy in monetary policy in Freagile.
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Trump asks Powell’s immediate resignation
The last shock began with a pointed publication of social networks highlighted by Kobeissi’s letter, in which Trump requested Powell’s immediate resignation, accusing him of maintaining excessively high interest rates at the expense of the US economy. Trump states that high rates not only suffocate economic growth, but also complicate efforts to refinance the substantial debt of the United States government.
“He knows exactly what he is doing, and is harming the country,” Trump wrote in a publication that included a handwritten note addressed to Powell. In the note, Trump argued that the United States is losing “hundreds of billions” due to strict monetary policies and warned that the current position is ignoring economic realities.
In addition to his accusations, Trump asked Congress to investigate the actions of Powell and the Federal Housing Finance Agency (FHFA), which Trump states is complicit to damage the US taxpayer.
Trump-Powell’s old conflict
The tensions between Trump and Powell are nothing new. Even before taking office, Trump warned that the United States faced severe financial tension. Once in office, Trump frequently criticized Powell, calling him “slow” and arguing that administering the Federal Reserve should be “one of the easiest jobs” in the government.
His disagreements were deepened when Powell’s feed repeatedly resisted Trump calls to rapid rates cuts, maintaining a cautious approach in response to inflationary concerns and global market volatility.
At the most recent FOMC meeting on June 18, Powell and the Fed chose to maintain the stable federal funds between 4.25% and 4.50%, resisting the Wall Street assembly pressure for a cut. Powell argued that continuous uncertainty about global tariffs and geopolitical tensions made premature reduce rates, which underlines the cautious approach of the Fed.
In a subtle sample of quiet trust, Powell even shared a meme of his best relaxed on social networks, indicating his refusal to leaning to political pressure.
Behind the scene: a powell replacement search
While Trump’s criticisms are public, behind the scene, there are growing indications that he is actively looking Christopher Waller.
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Replace Powell would represent a dramatic change for the Federal Reserve, which raises concerns between economists and market analysts about the independence of Fed. Traditionally, central banks are expected to make political decisions based on economic data and stability considerations instead of political directives. Any movement to replace Powell with a candidate inclined towards rapid rates cuts could fundamentally alter how Fed operates and manages monetary policy.
Bets for the economy
For Trump, the impulse to lower interest rates is essential for its economic vision. He argues that the lowest rates would stimulate growth, reduce indebtedness costs for companies and consumers, and facilitate the refinancing of national debt in more favorable conditions.
However, critics warn that reducing rates too fast could rekindle inflationary pressures, undermine the credibility of the Fed and trigger unwanted consequences in financial markets.
The current Fed policy has maintained inflation under control while stable growth is maintained, but the margin of error is reduced as global commercial tensions and tax pressures continue to increase.
Potential impact on cryptocurrency markets
Beyond the broader economy, the Trump-Powell conflict could have significant implications for the cryptocurrency market. Historically, the lowest interest rates encourage investors to seek greater yields in more risky assets, including bitcoin and other cryptocurrencies.
If Trump succeeds in his impulse for rapid rates cuts, he could lead to greater liquidity in financial markets, which can boost an increase in cryptography prices. Analysts point out that Bitcoin, Ethereum and other digital assets often work well in low -rate environments due to the increase in speculative activity and the search for alternative value stores.
Currently, Crypto’s global market capitalization has increased to $ 3.36 billion, marking a 3% increase in the last 24 hours. Bitcoin is quoted at $ 108,998, 2.61% more on the last day, while Ethereum has increased to $ 2,568, an increase of 5.62%, according to Coinmarketcap data.
However, continuous uncertainties on rates, interest rates and possible Fed leadership changes can introduce volatility in cryptography markets in the short term.
All eyes at the FOMC meeting of July 30
The next FOMC meeting on July 30 has become a fundamental date for markets, those responsible for formulating policies and cryptographic investors equally. According to the Fedwatch tool, only 25.8% of merchants currently expect a rate cut in the meeting, which reflects generalized skepticism about immediate policy changes despite political pressure.
If the Fed opts to reduce rates, it could relieve market anxieties and trigger a rally in actions and cryptocurrencies. On the contrary, if the Fed keeps the stable rates once again, it will probably intensify Trump’s criticism, adding fuel to the ongoing debate and potentially increasing the political pressure on the Fed in the coming months.
Final thoughts
The growing conflict between Trump and Powell is more than a personal dispute; It is a decisive moment in the battle for economic policy, monetary independence and the future of the United States financial system. The bets are high, and the result of this clash could shape interest rates, market dynamics and cryptographic panorama in the coming years.
As the FOMC meeting on July 30 is approaching, merchants, investors and policy formulators will closely monitor the developments in the Trump-Powell saga, knowing that their result could determine the next chapter for the US economy and the global markets it influences.
For now, Trump-Powell’s fight remains a marked reminder that the intersection of economic policy and policy can create domain effects far beyond Washington, shaping everything, from mortgage rates and credit markets to the volatile world of digital assets.
Writer
@Ellena
Ellena is an experienced cryptographic writer who loves to explore the intersection of blockchain technology and financial markets. She regularly provides information about the latest trends and innovations in the currency space.
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