The latest PPI (Producer Price Index) data from the United States fell short of expectations, reigniting former President Trump's fierce criticism of the Federal Reserve. He stated on social media: "There is absolutely no inflation! Powell is 'Mr. Too Late', and must immediately cut interest rates significantly. This guy is a disaster, he doesn't understand the economy at all!!!"
🔥 Why is Trump so agitated?
PPI data reflects changes in production costs for businesses, and this data being below expectations indicates that inflationary pressures may be easing. Trump uses this to emphasize that the Federal Reserve should quickly cut interest rates to stimulate the economy, blaming Powell for being "always a step behind" in monetary policy. The high interest rate policy has kept borrowing costs high for American businesses and consumers, severely dragging down economic development.
💡 Potential Impact on the Crypto Sphere:
1️⃣ Expectations of Increased Liquidity: If the Federal Reserve cuts interest rates, market liquidity will increase, and some funds may flow into cryptocurrencies like Bitcoin and Ethereum, driving up coin prices.
2️⃣ Change in Market Sentiment: Expectations of rate cuts may boost investor confidence, attracting funds that were previously on the sidelines back into the market.
3️⃣ Policy Uncertainty: The Federal Reserve's decisions still depend on comprehensive data such as CPI and employment. Although Trump's comments have intensified market attention, the actual policy direction still needs to be observed.
📌 Suggestions for Action:
In the short term, attention can be paid to the volatility opportunities brought about by changes in Federal Reserve policy expectations, but caution is needed regarding the risk of pullbacks that may be triggered by repeated macro data. Mainstream coins ($BTC, $ETH, $SOL) remain relatively robust choices.
