Trump Criticizes Fed Chair Powell, Urges Rate Cuts

Former President Donald Trump labeled Federal Reserve Chair Jerome Powell a moron, advocating for cutting interest rates to 1–2%. This statement was made during a public address on June 21, 2025, in Washington.

Trump’s criticisms of Powell underscore uncertainty in U.S. monetary policy, with potential impacts on financial markets. The recent criticisms by Donald Trump towards Federal Reserve Chair Jerome Powell have intensified, as Trump openly called Powell a “Total and Complete Moron.” This criticism was accompanied by calls for interest rate cuts, suggesting a shift to a rate of 1–2%.

Trump hinted at the possibility of dismissing Powell, a notion he previously expressed during his earlier term. “Maybe, just maybe, I’ll have to change my mind about firing him? But regardless, his Term ends shortly!” Despite turbulent economic times, Powell remained cautious, emphasizing data-driven policy adjustments. The ongoing uncertainty around the Fed’s monetary policy could majorly impact both traditional and digital financial markets. Rate cuts usually encourage capital inflows toward risk assets, affecting cryptocurrencies.

Governor Christopher Waller mentioned the potential for rate cuts as early as July, while Powell emphasized the employment situation and slightly elevated inflation. Historically, discussions around U.S. rate policy have led to increased volatility in cryptocurrency markets, affecting major assets like BTC, ETH, and stablecoins. A historical precedent exists from 2019 to 2020 where Trump’s pressure on the Fed for rate cuts sparked interest and buying in major digital assets. This necessitates watching upcoming Fed decisions and market responses closely.

The ongoing tensions and policy discussions indicate potential shifts in monetary policy. They may lead to significant volatility in financial and digital asset markets, with cryptocurrencies possibly benefiting from this uncertainty.