Markets React as Trump Renews Aggressive Rate Cut Call

President Donald Trump resumed his campaign of an aggressive monetary easing urging the Federal Reserve to reduce interest rates to 1%.

Speaking at the Kennedy Center, he said the U.S. should be “three or four points lower” and revealed he is narrowing down “three or four” candidates for the next Fed Chair.

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Us president made the remarks as pressure on the current Chair Jerome Powell, whose term expires in May 2026, increased.

Trump Presses Fed for Aggressive Rate Cuts and New Leadership

Trump cited that the U.S. economy requires faster growth and reduced borrowing costs, as every point of interest rates costs the government $360 billion per year.

He lamented the move by Powell to maintain rates when there is tariff and inflation data saying there is increased mortgage unaffordability under his tenure.

The president has requested a lowering of rates, which are currently averaging 4.33%  to about 1%, which he thinks will increase investment and lower the cost of debt servicing.

He once more referred to Powell as a man of “Too Late” and said that he had missed chances to take the lead on interest rate policy.

Christopher Waller and Michelle Bowman, two Fed governors, have advocated modest rate cuts, voting against the extent of reductions at the previous meeting.

Trump welcomed their stance but urged greater action, couching it as needed to sustain U.S. economic leadership.

Policy Disputes Intensify as Fed Faces Internal and External Pressure

The administration has looked at the possibility of Powell being dismissed on cause, citing overruns in a $2.5 billion Fed building project.

Trump attacked the cost of the project, such as building a basement under the headquarter, which he labelled as grossly incompetent. He opined that Powell needs to step down after Governor Adriana Kugler announced her resignation.

In the past, the Supreme Court has decided that Powell cannot be removed only on the basis of policy differences, and the president is restricted until 2026.

But Us president has suggested that he may name his Fed Chair choice sooner than anticipated, adding that all of the candidates under consideration are “great.”

In spite of the fact that Us president has characterized the economy as booming, he insists that radical reductions are required to keep the momentum going.

He cautioned that unless something is done, high mortgage rates will keep on restricting access to affordable housing to American families.

Market Performance Shows Strength in Bitcoin and Ethereum

The market is still resilient, with major cryptocurrencies reporting gains as Trump made his most recent statements about interest rates.

As of writing, Bitcoin (BTC) was priced at 121,897.96, with a 2.05% increase in the last 24 hours and 5.41% in the last week.

Ethereum (ETH) had a higher momentum, rising by 5.62% in a day and 28.71% in a week, with a price of $4,747.07.

The robustness of the cryptocurrency market is associated with the general positive attitude of investors, but interest rates decisions are a crucial sentiment factor.

In case Trump succeeds in his 1% rate push, analysts believe that additional liquidity provided may further boost the speculative assets, such as Bitcoin and Ethereum.

Nevertheless, this action would also increase the risk of inflation, which would provide a more turbulent macroeconomic environment to investors.