While the markets expected a clear monetary turn in 2025, Jerome Powell, president of the Federal Reserve, showered the hopes by appointing an unexpected official: Trump. Yes, Donald Trump, returning to the White House since January, imposes his brand on the American economy, to the point of forcing the Fed to play the watch. In a context where each word counts, Powell has dropped a diplomatic bomb, accusing Trump's policies of blocking the drop in rates.
In short
- Powell accuses Trump: its pricing policies slow down the drop in interest rates.
- The Fed remains cautious in the face of attacks and unpredictable decisions of the White House.
- Bitcoin decreases slightly in a tense monetary climate.
The return of economic Trumpism: a price uncertainty that is expensive
Inflation may slow down, the economy shows signs of fatigue, and yet the Fed keeps foot on the brake. For what ? Powell does not revolve around the pot: the customs prices imposed by Trump on the major business partners of the United States create a climate of instability that pushes the Central Bank to wait-and-see.
“I think it's true”replies Powell, almost laconically, to the question of whether the Fed would have already lowered its rates without the interventions of Trump. It is not a thin declaration. Behind the apparent calm, the message is clear: as long as the Trump administration multiplies sudden decisions, the Fed will not move.
In reality, this confrontation is more than a simple economic showdown. It is part of a history stretched between the two men. Trump, who had named Powell at the head of the Fed in 2019, never digested the rigor of his former foal.
Again on Friday, the American president called Powell “stubborn mule” and “stupid person”. Grifle diplomacy which does not seem to move Powell, but which indeed affects the monetary landscape.
Frozen, crypto unstable rate: when Trump also shakes bitcoin
Fed immobility does not only concern traditional markets. Cryptocurrencies, now sensitive to monetary policies like any financial asset, also live under the yoke of Trumpian rhetoric.
Since the rise in tensions between Trump and Powell, Bitcoin has experienced increased volatility. If he has lost only 1.3 % on Tuesday, the trend remains fragile.
Investors know this: as long as the rates remain high, liquidity is rarer, and cryptos suffer. This partial decoupling of the “anti-system” spirit of the beginnings is now a reality: Bitcoin lives to the rhythm of Washington.
But everything is not frozen. Powell has also supported stable -co -for legislation, a sign that the Fed, despite its prudence, does not turn its back on monetary innovations. He recognizes “a significant change in tone” to Wall Street towards cryptos, even anticipating a power of the sector. Double language? No, a pragmatic adaptation to a world where even monetary policy can no longer ignore digital tokens.
Between political posture and economic strategy, an unstable balance
Trump, by his frontal attacks and his transtanding commercial decisions, redraws the contours of American economic policy. In doing so, He forces the Fed to adapt In an uncomfortable position: keep your credibility without submitting to political pressure.
Powell, stoic, plays the watch, convinced that the economy must first find a minimum of predictability before starting the relaxation. Trump seems determined to make each price an electoral lever. In this showdown, it is not only the key rate that is at stake, but the Fed's ability to remain independent in an America in full recomposition.
The rest? It will depend on a single variable: Trump. Because behind curves, rate and felted speeches, a name is essential everywhere, from market rooms to crypto forums. For Trump, Bitcoin does not compete with the dollar, it becomes its valve, a strategic lever in its monetary vision.
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