Trump: 'Fed Chair Like Me' Amid Crypto Surge

Trump: 'Fed Chairman Doesn't Like Me' As Crypto Market Explodes

9 May 2025 at 19: 03

Reading time: 2 minutes

The Federal Reserve decided on Wednesday to leave interest rates unchanged. This policy initially seemed to have no impact on the crypto market, but on Thursday it broke Bitcoin the $100.000 barrier. During morning trading in New York, the largest cryptocurrency soared to a value of over $101.289, up more than 5% in 24 hours, according to data from CoinGecko.

On Wednesday, the Fed sparked much controversy by keeping interest rates unchanged, prompting a fierce response from Donald Trump. The president has been pressuring Fed Chairman Jerome Powell to cut rates in recent weeks, even threatening to fire him. In his speech from the White House announcing a trade deal with the United Kingdom, Trump reiterated his criticism of Powell. "If the chairman of the Fed, Jerome, were to cut rates ... like several other countries, that would be like jet fuel," Trump said. "That would be great."

"He doesn't want to do it because he's not in love with me," Trump added, previously calling Powell a "sucker" on his social media platform "Truth Social." Bitcoin has historically performed well in a low-interest-rate environment, encouraging investors to buy "risk-taking" assets like stocks and crypto.

Major stock indexes also rose, with the S&P 500 and the Nasdaq jumping more than 1%, driven by hopes for an end to Trump’s trade wars. At a press conference on Thursday, Trump even advised investors to buy stocks now.

Besides Bitcoin, Ethereum, the second largest virtual currency, made a leap and broke through $2.053 for the first time since early March, up more than 14% from the previous day. The cryptocurrency's price was recently at $2,047. XRP and Solana showed significant increases of over 6% and 10% respectively. In contrast, traditional safe haven gold fell by over 2%.

Frequently Asked Questions

Why is the Federal Reserve keeping interest rates unchanged?
The Fed has decided to hold rates steady to avoid further disrupting the economy, despite Trump pushing to cut rates.

What is the impact of low interest rates on Bitcoin?
Low interest rates encourage investors to buy riskier assets, such as Bitcoin, which can drive up prices.

Why is Trump criticizing Jerome Powell?
Trump criticizes Powell for believing that lower interest rates would stimulate the economy, often with sharp and personal remarks.

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