Donald Trump has once again injected uncertainty into global markets with a blunt social media statement, declaring that anyone opposed to his views on interest rate cuts should not be considered for the role of Federal Reserve Chair. By directly linking future Fed leadership to monetary easing, the comment immediately unsettled traditional markets and sent ripples through the crypto sector.
With current Fed Chair Jerome Powell expected to step down in May 2026, Trump has reportedly shown preference for more dovish candidates such as Christopher Waller and Kevin Hassett. His remarks signal pressure toward a looser monetary stance, reinforcing his long-standing criticism of Powell for being overly cautious on rate cuts. Trump has repeatedly argued that interest rates should be reduced proactively during periods of economic strength, even suggesting that inflation concerns should be addressed later rather than restricting market momentum through tighter policy.
Federal Reserve officials have pushed back firmly. Chicago Fed President Austan Goolsbee emphasized that monetary policy decisions must remain free from political influence, underscoring the Fed’s institutional independence. This growing tension highlights an intensifying standoff between political pressure and central bank autonomy.
For the crypto market, the implications are mixed. Rising expectations of rate cuts could improve dollar liquidity and support capital inflows into assets like Bitcoin and Ethereum. At the same time, heightened policy uncertainty increases the risk of sharp volatility. Bitcoin is currently consolidating near the $87,000 level, while Ethereum remains under pressure around $3,000. Persistent negative funding rates further suggest cautious to bearish market sentiment in the near term.
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