Trump Demands Immediate Fed Rate Cut Amid Bitcoin and Ether Sell-Off

President Donald Trump called for the Federal Reserve to cut interest rates immediately or let the Fed board override Chairman Jerome Powell's decisions. 

He posted on Truth Social, calling Powell a “stubborn MORON” and urging the board to intervene if Powell continues to oppose rate cuts. Trump claimed the current economic conditions demand swift action from the Fed leadership.

The Federal Reserve kept its benchmark rate at 4.25%–4.50% on July 30. Bitcoin dropped below $116,000 a couple of days after the Fed’s announcement, while Ether traded near $3,770. Both cryptocurrencies traded higher before the Fed's decision.

The Fed's decision passed by a narrow majority. Two governors voted against the decision and wanted a 25-basis-point cut to reduce borrowing costs. Fed officials said inflation remains above their 2% target and pointed to strong job growth as reasons to keep a “moderately restrictive” policy.

After the meeting, Powell defended the Fed’s cautious stance, warning that cutting rates too early could leave the fight against inflation unfinished. High borrowing costs may increase crypto volatility, analysts warned. Some market observers worry that continued rate increases could force large sales and destabilize digital asset markets.

Trump has pushed for lower rates since taking office in January. He argues that cheaper borrowing costs help economic growth and reduce expenses for businesses and consumers. In March, Trump signed an executive order creating a Strategic Bitcoin Reserve and a U.S. Digital Asset Stockpile using government-seized cryptocurrencies.

A recent White House report recommends a federal framework for digital assets. The administration has embraced blockchain technology as a way to drive innovation and investment. Trump's team sees digital assets as important for economic competitiveness.