On June 18, U.S. President Donald Trump once again slammed the Federal Reserve chairman for not lowering the interest rate, calling him “stupid.” His statement comes as the federal agency is expected to make a big decision on interest cut today.
While doubting the chances of a cut in the interest rate, Donald Trump said, “He is not a smart guy. He is worried about inflation. If there is inflation in six or nine months, you lower the rates or you raise the rates. You can do whatever you want. We have a stupid person, frankly, at the Fed. He probably won’t cut today.”
According to Trump, if a federal agency lowers the interest rate by 2-2.5%, it would save the US $700-$800B on their debt payments.
Since Trump was elected as president, the European Central Bank (ECB) has already cut interest rates 3 times. On the other hand, the Jerome Powell-led agency persistently refuses to lower interest rates by citing the problem of growing inflation. By maintaining interest rates, Jerome Powell wants to ensure economic stability.
President Trump said, “Europe had 10 cuts, and we had none. And I guess he’s a political guy, I don’t know. He’s a political guy who’s not a smart person, but he’s costing the country a fortune.”
Will Trump’s Request Help Bitcoin Break the $110,000 Barrier?
Amid the ongoing war-like situation between Iran and Israel, the cryptocurrency market is taking a hit, wiping out significant liquidity from the cryptocurrency market. This led to a decline in the price of major cryptocurrencies like Bitcoin and Ethereum.
For instance, the biggest cryptocurrency, Bitcoin, has plunged by 4.5% in a week, reducing its price from $110,000 to $104,787. On the other hand, Ethereum also dropped by approximately 12% in a week, plunging from $2,842 to $2,512. If the Federal Reserve slashes interest rates, it could help the cryptocurrency market recover from this dip.
However, the cryptocurrency market has received some good news in the last few days. On June 17, the U.S. Senate passed a stablecoin bill, the GENIUS Act, marking a big win for stablecoin issuers.
Also, banking giant JPMorgan is gearing up to test the deposit token ‘JPMD’ after it registered a trademark for the same. Such positive developments could spark a bullish moment in the cryptocurrency market, which could help BTC to break the $110,000 mark.
Also Read: Trump May Take Action to End Iranian Nuclear Enrichment: JD Vance
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