US President Donald Trump has recently made a series of forceful statements on Truth Social, increasing direct pressure on the Federal Reserve (Fed) to demand that the agency quickly lower interest rates. Notably, he cited August non-farm payrolls data showing 162,000 new jobs (beating all forecasts) to assert that the US economy is strong enough and deserves the lowest interest rates in the world, while also threatening to stop trading with countries where the US runs trade deficits.
This move shows increasingly aggressive intervention from the executive branch in the Fed's independence, as tariff policies and trade deficits continue to be the main tools of political pressure. The combination of demands for monetary easing with threats of trade war reflects the administration's expectation of a maximum-growth-stimulus policy.
For traditional financial markets, pressure to lower interest rates along with potential trade tensions could weaken the US dollar, while also driving strong capital flows into safe-haven assets such as gold amid concerns about geopolitical instability and inflation returning.
For the crypto market, expectations that the Fed will be forced to loosen monetary policy sooner to inject liquidity will be a positive long-term driver for $BTC and the entire market. However, the unpredictability of tariff measures could trigger short-term volatility that is difficult to control.
#fed #lai_suat #trump
This move shows increasingly aggressive intervention from the executive branch in the Fed's independence, as tariff policies and trade deficits continue to be the main tools of political pressure. The combination of demands for monetary easing with threats of trade war reflects the administration's expectation of a maximum-growth-stimulus policy.
For traditional financial markets, pressure to lower interest rates along with potential trade tensions could weaken the US dollar, while also driving strong capital flows into safe-haven assets such as gold amid concerns about geopolitical instability and inflation returning.
For the crypto market, expectations that the Fed will be forced to loosen monetary policy sooner to inject liquidity will be a positive long-term driver for $BTC and the entire market. However, the unpredictability of tariff measures could trigger short-term volatility that is difficult to control.
#fed #lai_suat #trump