Drama at the Fed never ends 🔥
Trump is back at it, slamming Powell over the $2.5B headquarters renovation costs (calling it wasteful while rates stay high). He's pushing hard for deeper rate cuts to juice the economy – but the latest 25bp cut in December came with a hawkish twist: the dot plot now signals only ONE more cut in 2026.
Market reaction? Rate cut expectations cooled fast, political pressure heated up, and 10-year Treasury yields are holding stubborn around 4.15-4.17% (no big surge, but not dropping either).
Powell (quietly adjusting glasses): "I've got until May 2026..."
Treasury yields (sighing): "Why do I always get caught in the crossfire?"
In short: More political noise on rates could keep yields elevated longer-term, risking higher inflation expectations. But for now, the bond market's just watching the show.
How's this playing out for risk assets like BTC (chilling around $87K-88K this holiday season)? Higher-for-longer yields aren't ideal, but crypto's holding steady so far.
What do you think – will Trump get his "verbal cuts" to stick, or does Fed independence hold? Believer in lower rates soon... or skeptic? Drop your take! 🚀
