Crypto traders remain on standby as political tension heats up between former U.S. President Donald Trump and Federal Reserve Chair Jerome Powell, injecting fresh uncertainty into the financial landscape.
Trump Criticizes Powell Over Interest Rates and Tariffs
Donald Trump lashed out at Jerome Powell on April 17, accusing the Fed Chair of being slow to act on interest rates and threatening his dismissal. Speaking at a White House event, Trump remarked, “I’m not happy with him… If I want him out, he’ll be out of there real fast, believe me.” He followed up on Truth Social, branding Powell “Too Late Jerome” and criticizing his reluctance to cut rates, unlike the European Central Bank.
BREAKING: President Trump accuses Fed Chair Powell of "playing politics" and says that "interest rates should be coming down now."
"Europe is cutting rates but our guy wants to play cute," he adds.
Trump also says Powell is "terrible" and Fed officials "are not very smart…
— The Kobeissi Letter (@KobeissiLetter) April 17, 2025
Trump’s frustration comes in the wake of Powell’s warning that recent U.S. tariffs—especially those targeting China—could backfire economically. Powell expressed concern over stagflation, a mix of rising prices and stagnant growth, which could undermine consumer confidence and investment.
Federal Reserve Holds Firm Despite Inflation Concerns
Despite growing political pressure, Powell chose not to reduce interest rates this week. The U.S. benchmark rate remains elevated at 4.5%, making loans more expensive and weighing on growth. The Fed’s decision reflects its ongoing battle with inflation, which sits at 2.4%—still above the central bank’s 2% target. Items like groceries are seeing even sharper price increases, according to recent data from the Bureau of Labor Statistics.
Though Trump suggested Powell’s days at the Fed may be numbered, prediction markets continue to reflect a low likelihood of his actual removal in 2025.
Crypto Traders in Holding Pattern as Uncertainty Reigns
While political drama unfolds, crypto traders are adopting a cautious approach. Market sentiment remains neutral as Bitcoin trades above $83,000, failing to breach the $86,000 resistance level. The total cryptocurrency market cap has hovered around $2.75 trillion, showing little momentum either way.
Trump’s statement that China may be open to striking a “very good deal” has added another layer of unpredictability. According to analysis by Santiment, any sudden shift in rhetoric from Trump could sway market sentiment—potentially creating the FOMO moment traders are anticipating.
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