US President Donald Trump lambasts Federal Reserve Chair Jerome Powell over interest rate policy, as Bitcoin remains flat and markets react to cautious economic forecasts.
Trump Lashes Out at Fed Chair as Monetary Policy Stalls Bitcoin Rally
President Donald Trump has launched a stinging attack on Federal Reserve Chairman Jerome Powell following the central bank’s decision to keep interest rates unchanged. Posting on Truth Social, Trump accused Powell of economic mismanagement, claiming his actions were costing the country billions.
“Too Late Powell is the WORST. A real dummy, who’s costing America $Billions!” Trump wrote on his social media platform, owned by Trump Media & Technology Group. He included a link to an article from National Mortgage News, which quoted calls from housing regulators urging Powell to resign if he maintains his current policy trajectory.
The Federal Reserve announced on 18 June that it would hold interest rates steady in the 4.25% to 4.5% range, choosing to adopt a “wait-and-see” approach amid economic uncertainties. The decision, made unanimously, left financial markets in a cautious mood and contributed to the stagnation of Bitcoin prices.
Bitcoin Stalls as Market Confidence Wavers
Following the Fed’s announcement, Bitcoin saw minimal movement, hovering around the $104,000 mark. Gains were marginal, ranging from 0.1% to 0.28% over the last two weeks. Analysts believe the Fed’s caution has effectively halted Bitcoin’s recent rally, disappointing traders and undermining momentum in the wider crypto market.
According to CNBC, Powell indicated during a press briefing that the central bank needed more clarity on the economic impact of President Trump’s trade tariffs. “We have to learn more about tariffs. I don’t know what the right way for us to react will be,” Powell said. “I think it’s hard to know with any confidence how we should react until we see the size of the effects.”
Economic Outlook Turns Cautious Amid Inflation Concerns
The Federal Reserve’s revised projections have further dampened investor sentiment. Inflation expectations for 2025 were raised to 3%, surpassing the central bank’s 2% target, while GDP growth forecasts were revised downward. This suggests weaker consumer spending and heightened global economic risks.
The immediate market reaction reflected these concerns. The Dow Jones Industrial Average dipped 0.10%, the S&P 500 dropped 0.03%, while the Nasdaq Composite managed a modest gain of 0.13%. Overall, markets had been trading higher prior to the Fed’s decision.
Crypto Market Reacts to Fed Decision
The cryptocurrency market mirrored the cautious sentiment. The global crypto market cap dropped 2.3% over the past 24 hours, falling to $3.3 trillion. Major digital assets, including Bitcoin, Ethereum, and Solana, declined between 0.2% and 1.6%. Trading volume also saw a notable reduction, plunging 15% to $101 billion from $120 billion on June 19.
The central bank signalled it still expects two rate cuts before the year ends, consistent with previous guidance issued in March. Nevertheless, the Fed reiterated its stance to proceed cautiously. “For the time being, we are well positioned to wait to learn more about the likely course of the economy before considering any adjustments to our policy stance,” Powell said during the press conference.
As economic uncertainty persists, both traditional and digital markets appear to be bracing for prolonged volatility.
