“The Fed would have trimmed the rates of not being for Trump’s tariffs,” says Jerome Powell

Powell resists Trump pressures and reaffirms his economic approach, ensuring that this position is necessary given the current situation product of tariff policies.

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• The president of the Federal ReserveJerome Powell, reaffirmed his position before Trump’s tariff policy.
  
• The volatility caused by the clashes between them has affected the cryptocurrency market.
  
• He Senate He approved Trump’s economic project without including tax exemptions for the crypto sector.

The president of the US Federal Reserve. (Fed)Jerome Powell, responded firmly to the criticisms made by President Donald Trump, stating that he would have dropped the interest rates if it were not for the tariff policy of the current administration.

In an intervention during a forum European Central Bank in Portugal, reviewed by BeincyptoPowell acknowledged that the economic landscape has been conditioned by the president’s commercial decisions. “I think that is correct,” He said, when asked about whether the rates of not being for the recent changes in the economic policy of the White House.

For months, Trump has publicly criticized Powell, demanding a reduction in rates to stimulate economic growth. Last Friday, the president described him as “A stubborn mule” and “a stupid person”, Despite having appointed him at the head of the Fed In 2019.

Impact on markets and cryptocurrencies

Powell’s refusal to reduce rates is based on the need to contain inflation in the middle of a high -uncertainty scenario. His cautious approach has been interpreted by markets as a sign of stability, although the constant clashes with the president have generated volatility.

Trump’s return to the presidency in January 2025 has been accompanied by an ambiguous commercial strategy, marked by intermittent advertisements of new tariffs to the main commercial partners of the country. This situation has led to Fed To adopt a more cautious approach, affecting both the stock market and cryptocurrency market.

Bitcoin, Like other digital assets, it has seen how its price becomes increasingly sensitive to macroeconomic indicators. In recent weeks, the increase in tensions between White House and Fed It has contributed to a generalized fall in the crypto market.

Senate Approve Trump Law without benefits for crypto

Meanwhile, the Senate American approved with broad support the ambitious fiscal project presented by Trump, popularly known as “One Big, Beautiful Bill”. However, The final text did not include the expected tax exemptions that would have benefited users and companies of the crypto ecosystem.

During the frantic final hours of negotiation, several pro-descript senators and industry representatives tried to include amendments that offered tax relief to miners, stakers and businesses that store digital assets. Despite the effort, the proposals failed to join the final version of the law.

This legislative setback represents a significant obstacle for the actors in the sector, who expected greater clarity and regulatory support under the new administration. However, reports claim that there could still be room for future reforms as the electoral pressure and technological lobbies increase.

Powell supports Stablecoins regulation

In his Tuesday speech, Powell also referred to the growing need to establish a regulatory framework for Stablecoins. “If we are going to have Stablecoins, and we are going to have them, we need a regulatory framework at the federal and state level.”he said.

The president of the Fed He has reiterated on previous occasions his support for cryptoactive legislation. However, its support seems to be more linked to the need to adapt to the growth of the sector than to a validation of its intrinsic value.

In a recent appearance before the Congress, Powell explained that the change in tone in Wall Street Regarding cryptocurrencies, it reflects a real transformation in the perception of the sector. “I hope that, over time, let’s see more activity”he declared.

These words show an implicit recognition of the political and economic rise of the crypto industry, although without compromising the traditional role of the Fed In monetary stability.

Article written by a content editor. Edited by Angel Di Matteo / Diariobitcoin

Original image of Diariobitcoin, created with artificial intelligence, for free use, licensed under public domain

WARNING: Diariobitcoin offers informative and educational content on various topics, including cryptocurrencies, AI, technology and regulations. We do not provide financial advice. Cryptactive investments are high risk and may not be adequate for all. Investigate, consult an expert and verify the applicable legislation before investing. I could lose all its capital.

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