$JUV
Breaking news! Trump locks in the new head of the Federal Reserve, will the crypto market see the benefits of interest rate cuts?
Trump is making big moves again! He has directly named the successor to the Federal Reserve Chair, former Fed governor Waller is the top candidate, and White House economic heavyweight Hassett is also on the list, having made a bold statement: a year from now, the federal funds rate could be brought down to 1% or even lower!
This move directly hits the excitement point for those in the crypto market! It’s important to note that the current chair Powell's term ends next May, and Trump has long been dissatisfied with his slow rate cuts, even threatening to fire him. The nominee Waller was interviewed by Trump back in 2017, clearly an ally, and Hassett is a core part of the White House’s economic team, so both are likely to follow Trump’s easing agenda.
Old investors know well: the Fed cutting rates = greater dollar liquidity = more hot money flowing into the crypto market! With interest rates still above 5%, if they really drop to 1%, just imagine the stimulus wave, the big moves for BTC and ETH could be hidden in there!
However, don’t get too excited too early; the new chair nomination requires Senate approval, and Powell is still firmly defending the Fed's independence, whether the rate cut can happen is still uncertain. But market expectations can sometimes drive the market more than actual policies!
Do you think Trump can successfully replace Powell this time? Can a super low interest rate of 1% really ignite a crypto bull market? Or is it just a campaign stunt before the election?