- Trump wants Fed Chair Powell to cut rates by 3 points.
- He says that each point saves America $360 billion.
- However, BlackRock believes that the Fed won’t be lowering interest rates.
The crypto market is on edge as two announcements that could shake the crypto market are yet to be made today. The first is that the Federal Reserve Board may announce a rate cut, the second is that the USA is expected to release a Strategic Crypto Reserve report, which will reveal the nation’s total crypto holdings. Trump wants Powell to cut rates by 3 points, while BlackRock predicts the Fed will not comply.
Trump Wants Powell to Cut Rates by 3 Points
Current US President, Donald J. Trump, has made his pro-crypto stance clear since his campaign to run for office. Ever since, Trump has worked on two main agendas, the first is to make the USA the prime crypto hub on a global scale, allowing crypto projects to thrive in the nation. The second is to help America relieve its debt and make the nation an economic powerhouse once again.
As soon as Trump took office, he fired Gensler like he promised, ensuring that the crypto market would thrive in the USA. Next, he announced the official formation of the US Strategic Crypto Reserve. This reserve is expected to hold all crypto assets seized by the US government via various processes. It is unclear which assets exactly the reserve holds and how much; this news will be revealed in a first-of-its-kind report later today.
Menawhiel, in the case of helping America get out of its ridiculously high debt, Trump has been pressuring Powell to cut rates. Even most recently, when Trump visited the Fed building under construction, he once again mentioned how he would appreciate Powell announcing another rate cut. Last year, Powell announced a small rate cut, which led to a hike in crypto prices. Thus, another rate cut would likely do the same.
As we can see from the post above, Trump explains how a rate cut would help the United States of America pay off its debt. Specifically, Trump expects Powell to cut rates by 3 points. Additionally, he says that each point cut adds up to $360 billion in savings; added up, these would be big numbers saved for America. Trump says Powell should cut, as any smart person would. He concludes his message by saying Powell will be missed when he leaves his post soon.
BlackRock redicts Fed Will Not Comply
Meanwhile. The largest asset manager in the world, BlackRock, believes that the Federal Reserve will not lower interest rates as Trump expects. Responses to the tweet ensue in a debate of when, why, and how much rate cut should occur. These differing views have led to no certainty on expectations for the matter. However, the community does not have to wait long to find out the decision.
