Trump Targets Powell Over Interest Rate Decisions
Former President Donald Trump has once again directed criticism toward Federal Reserve Chair Jerome Powell, accusing him of delaying critical rate cuts and exacerbating a growing housing crisis. As mortgage rates surge and crypto markets stumble, the stakes for the U.S. economy remain high.
Economic Pressures and Inflation Trends
Trump took to Truth Social, stating that Powell’s hesitancy to implement necessary rate cuts is wreaking havoc on the housing market. He argued that with inflation now under control, the Federal Reserve has a clear opportunity to reduce rates. James Fishback, CEO of investment firm Azoria, echoed Trump’s sentiments, claiming that delayed policies have driven mortgage rates higher unnecessarily.
Data from the CME Fed Watch Tool suggests an 83% chance of the Federal Reserve cutting interest rates to a range of 400–425 basis points. Despite some predictions of a more aggressive 0.5% cut, uncertainty prevails amid mixed economic signals.
Bitcoin and Cryptocurrency Markets React
The crypto market has also felt the impact of economic uncertainty, with Bitcoin slipping below $114,000 and retail sentiment turning bearish. According to analytics firm Santiment, this sharp decline in sentiment marks the most negative outlook since June, during heightened geopolitical tensions.
Not all experts are pessimistic, however. Investor Ted Pillows believes another Bitcoin rally is likely in Q4, fueled by potential rate cuts and rising global liquidity. He projects a price surge that could push Bitcoin beyond $160,000, urging investors to remain patient amidst market turbulence.
What Lies Ahead
With Powell’s speech at the Jackson Hole symposium and the upcoming Federal Reserve meeting on September 16-17, all eyes are on how these decisions will impact the markets. Fed minutes released this week may provide additional clarity on the central bank’s approach to inflation and interest rates. Meanwhile, the housing crisis, high tariffs, and uncertain economic policies underscore the lingering challenges for U.S. markets.
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