Trump Urges Fed Rate Cuts Amid Stable Markets, Bitcoin Surges Past $90K

U.S. President Donald Trump has reiterated his stance on the need for Federal Reserve rate cuts, stating that the current economic environment presents the "perfect time" for such a move. Trump made these remarks while speaking to reporters, emphasizing that he believes the Federal Reserve should act promptly to lower interest rates. This sentiment was also expressed during an event where he swore in the new SEC Chair, reiterating his belief that the timing is ideal for rate reductions.

Trump's calls for rate cuts have been persistent, despite his previous threats to dismiss Federal Reserve Chair Jerome Powell. Although he has since retracted those threats, his advocacy for lower interest rates remains steadfast. Trump has expressed his desire for Powell to be more proactive in reducing rates, stating that he would like to see the Fed act "early or on time, as opposed to late." This position has been consistently communicated in various public statements, including from the Oval Office, where he reiterated his belief that the current moment is opportune for rate cuts.

Despite Trump's direct messaging, the markets have remained relatively stable. Bitcoin surged past $90K, driven by optimism sparked not only by Trump’s comments but also by the U.S. Treasury Secretary’s remarks labeling the trade war with China as “unsustainable.” Treasury yields saw only modest movement, with short-term rates edging up to 3.82% following weak demand at a bond auction. The U.S. dollar held steady, reflecting cautious investor optimism over easing trade tensions.

Analysts suggest that Trump’s public push may be more about managing expectations and assigning blame than any real threat to Powell’s leadership. The Federal Reserve, meanwhile, remains cautious. While Powell’s job is safe for now, the central bank continues to assess the impact of Trump’s policies on trade, taxes, and immigration. With inflation stubbornly above the 2% target for the fourth year in a row, most Fed officials believe current interest rate levels are justified.

Economists warn that the ripple effects of tariffs could weigh on growth later this year, possibly forcing the Fed to revisit its stance. Despite the Fed's independent policy-making role, Trump's consistent message underscores his belief in the necessity of lowering interest rates to support the economy. With Wall Street bouncing back and Trump intensifying his calls for action, the debate over rate cuts is far from over.