Powell Specifically Identifies Donald Trump as the Reason the Fed Has Not Been Able to Lower Interest Rates

In a statement at the European Central Bank forum in Portugal, the Chairman of the Federal Reserve of America (Fed), Jerome Powell, stated that he could have lowered interest rates if not hindered by President Trump's tariff policy.

According to Powell, Trump's continuous imposition and then withdrawal of tariffs with trade partners has forced the Fed to maintain a "wait and see" strategy. He also dismissed criticisms from Trump, who recently called him a "stubborn mule" and an "idiot." Bitcoin Price Affected By Political Tensions The standoff between the Fed and the President of America has negatively impacted the crypto market, which is becoming increasingly sensitive to interest rate fluctuations and macroeconomic policies. Bitcoin has decreased slightly by 1.3%, to around $105,859, amid concerns from investors about unstable monetary policy. At the same time, the U.S. Congress just passed Trump's major bill without including a tax exemption clause for crypto users, disappointing the digital currency community. Powell Supports Stablecoin Legalization, Acknowledges the Development of Crypto Although maintaining a cautious stance, Mr. Powell also supports the establishment of a federal and state legal framework for stablecoins, stating that this is a necessary step as stablecoins have become an irreversible trend. He also acknowledged that "the mindset on Wall Street has changed significantly regarding crypto" and hopes there will be "more activity in the future" if the industry continues to develop in a stable and regulated manner.