Fed Chair Powell Responds to Trump’s Criticism, Talks Crypto and Interest Rates
Federal Reserve Chair Jerome Powell pushed back at President Donald Trump on Tuesday, saying he would have already lowered interest rates if it weren’t for Trump’s trade policies.
Speaking at a forum in Portugal, Powell agreed that without Trump’s unpredictable tariff decisions, interest rates might have gone up in 2025. Trump has been pressuring Powell for months to lower rates, even insulting him recently by calling him a “stubborn mule” and a “stupid person.”
But Powell has refused to cut interest rates, saying that doing so during uncertain economic times could cause inflation. He pointed to Trump’s mixed signals on tariffs as a reason the Fed is being cautious and taking a “wait and see” approach since Trump returned to office in January.
This ongoing tension between Powell and Trump has also affected the crypto market. Like stocks, the prices of cryptocurrencies—especially Bitcoin—are now closely tied to interest rate policies. In recent weeks, Bitcoin and other crypto prices have dropped as tensions between Powell and Trump increased.
Still, Powell’s comments on Tuesday didn’t have a major effect on Bitcoin. The price dipped only slightly, down about 1.3% in the last 24 hours, to $105,859.
Powell also showed support for new stablecoin laws being discussed in Congress. He said if stablecoins are going to exist, there must be clear rules at both the federal and state level.
While Powell has supported some crypto regulation in the past, he’s often been cautious. He noted that Wall Street’s views on crypto are changing and expects more activity in the space over time.
