- Trump demands rate cuts amid inflation claims.
- Federal Reserve keeps rates stable for now.
- Crypto markets watch for dovish policy impact.
Donald Trump urged the Federal Reserve to lower interest rates, claiming inflation is down, as shared on Truth Social in May 2025. This call comes amid ongoing debates over inflation trends and economic policy direction.
Inflation and Interest Rates
President Donald Trump indicated a reduction in inflation, urging the Federal Reserve to cut rates. Despite his claims, recent data shows only moderate inflation. The Fed remains cautious, with interest rates at 4.25%-4.50%.
Criticism towards Jerome Powell
Donald Trump criticized Jerome Powell for not lowering rates, highlighting declines in gasoline and grocery prices. Despite the optimism, Federal Reserve’s Adriana Kugler expressed concerns over potential tariff-induced inflation pressures.
“No Inflation, and Prices of Gasoline, Energy, Groceries, and practically everything else, are DOWN!!! THE FED must lower the RATE, like Europe and China have done. What is wrong with Too Late Powell?” — Donald Trump
Impact on Crypto Markets
Potential cuts could ease financial conditions, impacting crypto markets. Historically, dovish Fed actions have led to increased investor interest in cryptocurrencies, with potential rallies in BTC and ETH on the horizon.
Financial analysts observe that lower rates often boost crypto assets, as lower yields drive investors towards riskier assets like DeFi protocols. Despite Trump’s claims, the Fed’s steady rate decision reflects caution over economic uncertainties.
Technological Adoption and Investment Flows
Expected rate cuts could influence technological adoption and investment flows into crypto and DeFi markets. Past trends show a strong correlation between rate reductions and increased asset inflows, potentially benefiting major cryptocurrencies.
About the author
US Lawmakers Urge Treasury to Clarify Crypto Tax Rules
Two Republican lawmakers urge the U.S. Treasury to clarify cryptocurrency tax rules amid regulatory shifts.
Thailand Approves $150 Million Digital Investment G-Token
Thailand's Ministry of Finance has approved a new digital investment token, the G-Token, valued at 5 billion baht, aiming to attract retail investors with higher returns than bank deposits.
Coinbase Invests in Canadian Stablecoin Issuer Stablecorp
Coinbase, a U.S.-based cryptocurrency exchange, invests in Stablecorp to enhance the stablecoin ecosystem in Canada, particularly focusing on QCAD integration amid regulatory changes.
US Senators Push for Corporate Crypto Tax Overhaul
Senators Lummis and Moreno push for a tax policy change to benefit digital asset companies. Treasury official urged to consider modifications.
Base Surpasses Arbitrum in Layer 2 Total Value Locked
Base, backed by Coinbase, has overtaken Arbitrum in total value locked as of May 2025, asserting its position in the Layer 2 landscape.
Trump Calls for Fed Rate Cuts Amid Inflation Debate
Donald Trump calls for Federal Reserve rate cuts, citing lower inflation; markets await potential crypto impact.
Related
US Lawmakers Urge Treasury to Clarify Crypto Tax Rules
Two Republican lawmakers urge the U.S. Treasury to clarify cryptocurrency tax rules amid regulatory shifts.
Thailand Approves $150 Million Digital Investment G-Token
Thailand's Ministry of Finance has approved a new digital investment token, the G-Token, valued at 5 billion baht, aiming to attract retail investors with higher returns than bank deposits.
Coinbase Invests in Canadian Stablecoin Issuer Stablecorp
Coinbase, a U.S.-based cryptocurrency exchange, invests in Stablecorp to enhance the stablecoin ecosystem in Canada, particularly focusing on QCAD integration amid regulatory changes.
US Senators Push for Corporate Crypto Tax Overhaul
Senators Lummis and Moreno push for a tax policy change to benefit digital asset companies. Treasury official urged to consider modifications.
Base Surpasses Arbitrum in Layer 2 Total Value Locked
Base, backed by Coinbase, has overtaken Arbitrum in total value locked as of May 2025, asserting its position in the Layer 2 landscape.
Virtuals Protocol Launches VIRTUAL Token Staking Feature
Virtuals Protocol has launched a staking feature for its $VIRTUAL token, introducing new governance and reward structures.
Be the first to leave a comment