Why Trump Keeps Talking About the Fed and Interest Rates

Donald Trump takes a step back from the previously said statement about Fed chairman Jerome Powell . Just days earlier he had said - “ Powell’s Termination cannot come fast enough! ” . He had made this statement out of frustration for not cutting interest rates , which he believes is hurting the U.S. economy. Now that inflation is cooling he sees high rates as unnecessary.

Now, Trump indicates that he has no intention of ousting Powell from his job at least for now. adding th at he "may have to force something" . From the White House, he conceded that he's still not pleased with the manner in which the Federal Reserve is handling interest rates, but he's willing to wait and see how things go as inflation continues to fall.

Source : youtube

As prices no longer were moving as rapidly, Trump sees no need for high interest  now. "With inflation coming down, keeping interest rates this high doesn't make sense," he argued, and that it is making it more difficult for families and small businesses.

Markets and Crypto Investors Pay Close Attention :

• Financial markets, including cryptocurrency, tend to respond to what the Federal Reserve communicates or implements.

• Lower interests typically translate to more money going into investments such as Bitcoin, stocks, and property. That is the reason why Trump's words are closely monitored by investors expecting rate reductions in the future.

Source : youtube

Powell's Role Still Under Watch :

• While Trump has receded from his initial demand that Fed be fired, tensions between the two continue.

• He hired Powell when in office, but their policies on economic issues have frequently diverged.

• With another election looming, the Federal Reserve's role and who sits at its Command  might again become a hot-button issue.

• If He becomes president again, there would be possible leadership shifts or new pressure on the Fed to go in a different direction.