In a week marked by political tension and market volatility, former U.S. President Donald Trump launched a fresh offensive against Federal Reserve Chair Jerome Powell, calling him a “major loser” and demanding immediate interest rate cuts. The sharp criticism rattled equity markets but seemed to boost Bitcoin, which continued its upward trajectory amid broader financial uncertainty.
Trump vs. Powell: A Renewed Clash
Posting on Truth Social, Trump accused Powell of being late to respond to economic conditions. He argued that inflation is no longer a threat and warned that unless the Fed lowers rates, the U.S. could be heading toward a slowdown.
“There can almost be no inflation, but there can be a slowing of the economy unless Mr. Too Late, a major loser, lowers interest rates, NOW,” Trump wrote.
Markets React: Stocks Slide, Bitcoin Surges
The backlash was immediate on Wall Street. The S&P 500 fell 2.4%, the Nasdaq dropped 2.5%, and the Dow Jones tumbled nearly 1,000 points—its steepest single-day loss in months. Year-to-date, tech-heavy indices are in the red, as investor anxiety rises over political influence on monetary policy.
Meanwhile, Bitcoin [BTC] rose to a four-week high of $88,500, defying risk-off sentiment and reinforcing its growing image as a hedge against traditional financial turmoil. As of the latest data, BTC remains strong at $88,175, up 0.75% in the past 24 hours.
A Sentiment Shift in Crypto
The Crypto Fear and Greed Index, which hovered around 31 (fear territory) for weeks, has now climbed to 47—indicating neutral sentiment. This signals that investors are gradually warming up to the idea of digital assets holding ground, even when traditional markets struggle.
Can Trump Fire Powell?
Amid growing speculation, legal analysts suggest that Trump cannot remove Powell from his post without a change in legislation. Powell’s term runs through May 2026. Yet, any attempt to do so could trigger a chain reaction across markets.
“You are raising the bar for the Fed to cut,” noted Evercore ISI Vice Chairman Krishna Guha, suggesting that such political pressure could complicate the Fed’s independence and market expectations.
What’s Next for Investors?
While Citigroup forecasts multiple rate cuts this year, with the first expected in June, uncertainty remains high. Crypto markets may continue to benefit from investor hedging against macro and political instability, especially if Bitcoin maintains its momentum above key levels.
Conclusion
Bitcoin’s recent strength in the face of political drama and stock market declines could be a signal worth watching. Whether this is a short-term spike or a longer-term trend, only time will tell.
This content is for informational purposes only and does not constitute financial or investment advice.
