Bitcoin Drops Amid Trump’s Harsh Words for the Fed: “Huge Mistake on Rates!”
In a bold and public criticism directed at the Federal Reserve, former U.S. President Donald Trump stated that the Fed has made a “massive mistake” in its latest interest rate decision. This statement, delivered during a recent meeting with Federal Reserve Chairman Jerome Powell, has sent shockwaves through financial markets and contributed to a sharp decline in Bitcoin's value.
According to reports cited from Bloomberg Terminal, Trump did not hold back in expressing his dissatisfaction with the Fed's monetary policy. He argued that the central bank’s decision to maintain or potentially increase interest rates is detrimental to both the U.S. economy and global market stability. His remarks come at a time when inflation pressures, investor uncertainty, and crypto market volatility are already causing significant strain.
> “The Fed is making a terrible mistake,” Trump declared. “By failing to ease monetary policy, they’re choking economic growth, killing jobs, and dragging down asset values, including cryptocurrencies.”
This isn’t the first time Trump has clashed with Powell or the Federal Reserve. During his presidency, Trump frequently criticized the Fed for being too slow in cutting rates and for acting independently of the executive branch. However, this latest statement is one of the most direct and severe rebukes since he left office.
The timing of Trump’s statement is critical. Bitcoin prices dropped significantly within hours of the news, highlighting how sensitive digital asset markets remain to macroeconomic signals and geopolitical commentary. Market analysts speculate that investors may be reacting to renewed fears of tighter monetary conditions and decreased liquidity factors that typically hurt high-risk assets like cryptocurrencies.
📉 Market Reaction:
Bitcoin: Fell sharply by several percentage points following the news.
U.S. Stocks: Remained volatile throughout the day as investor sentiment wavered.
Bond Yields: Continued their climb, suggesting expectations of prolonged high interest rates.
Financial experts are now divided on how the Fed will respond to such high-profile criticism. While the institution maintains its independence, public pressure from figures like Trump can influence political narratives, especially as the U.S. edges closer to election season.
Powell, for his part, has remained largely silent in public on the matter. The Fed chair has reiterated that all interest rate decisions are made based on economic data and long-term objectives, not political commentary.
Still, the weight of Trump’s words and their impact on investor behavior cannot be ignored. As 2025 unfolds, all eyes will remain on the dynamic between political leaders and monetary authorities — a tension that could reshape markets and policies alike.