Trump Blasts Powell’s Rate Policy While Bitcoin Struggles to Break Out

Trump went nuclear on Fed Chair Jerome Powell again, branding him “stupid” and a “dummy” after the central bank stubbornly held rates at 4.25% to 4.5%. The president demanded Powell resign if he won’t slash rates, claiming his policies are costing America billions. Meanwhile, Bitcoin barely budged around $104,000 following the rate decision, showing all the enthusiasm of a wet napkin. The crypto’s lackluster 1% gain suggests markets aren’t exactly thrilled with the Fed’s wait-and-see approach, and there’s more brewing beneath the surface.

Trump’s Harsh Criticism of Federal Reserve Chair Jerome Powell

Trump released a verbal barrage against Federal Reserve Chair Jerome Powell, pulling no punches in his assessment of the central banker’s intelligence and competence. The former president didn’t mince words, calling Powell “stupid” and a “dummy.” Ouch.

Trump’s frustration boiled over as he blamed Powell for costing the U.S. billions through what he sees as misguided interest rate policies. He even suggested Powell should quit if he won’t budge on rates.

The attacks weren’t just about numbers. Trump labeled Powell as “political,” claiming the Fed chair makes decisions based on politics rather than actual economic data. During media appearances, Trump admitted he bounces between being “nasty” and “nice” toward Powell. But here’s the kicker – he says “nothing works.”

Trump insists the country has “no inflation, only success,” making Powell’s cautious approach seem downright stubborn. The Fed majority projects two rate cuts for 2025 despite Trump’s pressure for immediate action. The criticism comes as the Fed kept rates unchanged despite holding steady in their latest meeting.

Fed Maintains Rates at 4.25-4.5% Despite White House Pressure

Defiance took center stage at the Federal Reserve as policymakers unanimously voted to keep interest rates locked at 4.25% to 4.5% during their June meeting. The decision marked a clear rejection of White House demands for aggressive cuts.

Both the Biden administration and Trump had been breathing down Powell’s neck, demanding two full percentage points slashed from rates. The Fed wasn’t having it. Officials cited inflation concerns and economic uncertainties as justification for their wait-and-see approach.

The Federal Reserve stood firm against intense political pressure, brushing off demands for dramatic rate cuts from both administrations.

The vote represented a pause after rate cuts ended in December 2024. Despite inflation creeping closer to the 2% target, the Fed remained stubborn. Their latest projections bumped core PCE inflation expectations to 3% for 2025, up from March’s 2.7% forecast. The central bank continues its dual mandate focus on maintaining maximum employment while targeting 2% inflation.

White House representatives complained that high rates could crush recovery efforts and tank investment activities. The Fed shrugged. They’re eyeing maybe two small cuts later in 2025, totaling just 0.5 percentage points.

The monetary policy stance also impacts cryptocurrency markets, where Bitcoin ETFs recently gained approval after years of regulatory scrutiny. Meanwhile, unemployment projections show the jobless rate climbing to 4.5% by the end of 2025, up from the current 4.2% recorded in May.

Bitcoin Stagnates Around $104,000 Following Rate Decision

While the Fed stood its ground on rates, Bitcoin couldn’t summon much enthusiasm either. The cryptocurrency basically shrugged at Powell’s decision, continuing its sideways shuffle around $104,000. Not exactly the explosive reaction crypto bulls were hoping for.

Bitcoin hit approximately $106,678 on June 17, managing a measly 1% daily gain. The price has been ping-ponging between $104,000 and $106,000, with traders seemingly paralyzed by indecision. Technical analysts are pointing to bullish signals – break-of-structure patterns and improved order flow – but the market clearly isn’t buying the hype yet.

The $104,000 level remains make-or-break territory. Lose it, and analysts warn of a potential “rug pull.” Hold it, and Bitcoin might finally break out of this boring consolidation phase that’s putting everyone to sleep.

Despite recent market stagnation, Bitcoin is increasingly viewed as a stable asset amid ongoing economic uncertainties and concerns about monetary policy.

Frequently Asked Questions

Can Trump Legally Remove Jerome Powell From His Fed Chair Position?

Legally removing Jerome Powell requires demonstrating “for cause” such as malfeasance or incapacity, not policy disagreements. No president has ever removed a Fed Chair, and legal precedent creates significant barriers to removal.

How Do Fed Rate Decisions Typically Impact Cryptocurrency Markets Long-Term?

Fed rate cuts typically boost cryptocurrency markets long-term by increasing liquidity and encouraging risk-taking, while rate hikes generally suppress crypto prices by reducing available capital and favoring safer investments.

What Inflation Rate Would Trigger the Fed to Cut Rates?

The Federal Reserve typically cuts rates when inflation sustainably declines toward or below its 2% target, especially when combined with economic weakening or rising unemployment concerns threatening full employment.

Has Any President Previously Made Such Personal Attacks on Fed Officials?

No previous president has made such personal attacks on Federal Reserve officials. While past presidents criticized Fed policies, Trump’s direct personal insults against Chairman Powell represent an unprecedented departure from traditional presidential discourse.

Will Trump’s Criticism Influence Other Fed Board Members’ Voting Decisions?

Fed board members historically maintain independence from political pressure, prioritizing economic data over external criticism. The unanimous recent rate decision suggests Trump’s attacks haven’t swayed voting patterns among board members in this context.

Conclusion

Trump’s latest tantrum over Fed policy landed with a thud. Powell held firm at 4.25-4.5%, ignoring the political theater. Bitcoin? Still stuck around $104K, proving crypto doesn’t always dance to Washington’s tune. The president can rage-tweet all he wants, but the Fed chair isn’t budging. Markets yawned at the drama. Same old story: politicians bark, central bankers do whatever they planned anyway. Nothing shocking here.