Fed Holds Steady as Trump Pushes for Lower Rates

Trump Calls for Rate Cuts Again After Strong Jobs Report

President Trump is requesting lower interest rates once more. His latest push came after new data showed strong job growth in the U.S. economy. The report from the Bureau of Labor Statistics showed that nonfarm payrolls rose by 177,000. That number beat expectations. Unemployment stayed the same. Wages also increased. These numbers point to a strong economy. But despite this, Trump still wants the Federal Reserve to lower interest rates.

The crypto community has long supported interest rate cuts. Lower rates often lead to more investment in riskier assets, like crypto. Some analysts are hopeful that rate cuts could drive up Bitcoin prices. They believe fresh momentum could come from cheaper borrowing and greater investor appetite. But this optimism may not match reality. The Fed has made it clear that it won’t act just because of political pressure.

Source: X

The Federal Reserve Chair, Jerome Powell, has maintained a strong stance. He has stated that rate cuts are not now necessary for the economy. The uncertainty brought on by tariffs is his biggest worry. Tariffs have made it hard to predict the future of the U.S. economy. That uncertainty makes the Fed cautious. Cutting rates too soon would limit the Fed’s options if a real crisis hits later.

Powell wants to hold onto interest rate cuts as a tool for future use. If he cuts now, it may backfire if the economy takes a serious hit later. That’s why he’s standing firm, even when the pressure comes from the President.

Trump Has Limited Power Over the Fed

President Trump has tried many times to influence Powell’s decisions. At one point, he even talked about firing him. But Trump doesn’t have the legal authority to remove Powell from office. Any attempt to do so could shake the markets and cause even more instability. It would also trigger serious political backlash.

After today’s jobs report, markets now expect fewer chances of rate cuts in the coming months. The CME Group’s data shows that any interest rate cut in May is almost off the table. Investors have adjusted their expectations quickly in response to the solid jobs data.

Source: X

Economists agree that the strong jobs report reduces the chances of a rate cut. Justin Wolfers from the University of Michigan put it simply. He said the economy is doing well. There’s no clear need to cut rates. The big risks, like the impact of tariffs, haven’t fully shown up yet. Powell wants to wait and see what happens, rather than make assumptions too early.

Wolfers also pointed out that the Federal Reserve is focused on long-term stability. Reacting too quickly could create more problems. Cutting rates after strong data would send mixed signals. It could even confuse investors.

The crypto market has seen a lot of movement based on rumors about interest rate changes. Traders have reacted quickly to false or misleading headlines in the past. This creates risky conditions. The kind of rapid rate reduction that some in the cryptocurrency field are looking for would not be supported by a robust economy.

In cryptocurrency trading, speculation is normal, but it's crucial to maintain perspective. The market may be excited by rate decrease rumors, but they frequently don't result in actual changes. Interest rates are probably going to remain unchanged until Powell and the Fed feel compelled to take action.

Lower interest rates are still a priority for President Trump. He thinks it would stimulate the markets and the economy. In the crypto world, some people concur. The Fed isn't prepared to do that, though. It is not supported by the facts as of now. Powell and other Fed officials are concentrating on being ready for any shocks in the future. For the time being, traders and investors should exercise caution and refrain from becoming enmeshed in rumors or the news.