Leggi questo articolo in Italiano
Trump takes it out on Powell: “Cut the interest rates!”
By Davide Grammatica
US President Donald Trump has directly asked Jerome Powell, chairman of the Fed, to cut interest rates
Remote back and forth between Powell and Trump
While global markets are having a very difficult time due to the new US trade policy and the introduction of Trump’s new tariffs, the president has decided to hold Jerome Powell, chairman of the Fed, accountable for the problems.
The new tariffs have fueled investor uncertainty, which clearly reflects concerns about a possible global economic slowdown (if not a recession).
Stock markets around the world have reacted violently. The Nasdaq 100, the technology index par excellence, is experiencing enormous pressure from sellers. Today it is showing a -3.7%, with the index in free fall at -7.2% on the weekly chart.
This is also relevant for BTC, which in a phase lasting almost 290 days, from the end of December 2021 to October 2022, collapsed by 70%, from over $50k to less than $16k, in parallel with the 38% collapse of the Nasdaq.
The president's request
It seems paradoxical, but President Trump, just as Powell was speaking at a conference in Arlington (Virginia), asked the Fed chairman to resolve the situation, accusing him of taking a political stance by not lowering interest rates.
“This would be the PERFECT time for Fed Chairman Jerome Powell to cut interest rates,” Trump wrote on Truth. ”Energy prices are down, interest rates are down, inflation is down, and even eggs are down 69%. Jobs are UP, all in the last two months: A GREAT VICTORY for America. CUT INTEREST RATES, JEROME, AND STOP PLAYING POLITICS!
However, it is difficult to deny that it is precisely Trump’s trade policies that represent an obstacle to cutting rates, given that this depends on the trend of inflation. The new tariffs, in the immediate term, are likely to create a sharp general rise in prices, and this complicates the Fed’s maneuvers with respect to interest rates.
