The Federal Reserve has finally revealed its much-anticipated decision regarding interest rates.
As widely predicted, the Fed has opted to reduce interest rates by 25 basis points.
Bitcoin’s initial response following this announcement is illustrated below:
In the meantime, President Donald Trump is intensifying his pressure on the Federal Reserve. After maintaining steady interest rates since December, the Fed is now evaluating how Trump’s assertive economic strategies are influencing the economy while he actively seeks to lower these rates through direct intervention.
The president has been vocal in his criticism of the Fed for its hesitance to make rate cuts. He even attempted to remove Chair Jerome Powell from his position and announced changes within board membership, including Lisa Cook’s departure. Additionally, Trump appointed Stephen Miran as an economic advisor to join the influential Board of Governors at the Fed, allowing him a swift confirmation process through Republican channels.
During a Cabinet meeting on August 26th, Trump expressed confidence about soon having a majority on the Board of Directors: “We will have a majority very soon. This will be great. When we have that majority in place, I believe it will rejuvenate the housing market and lead us towards overall prosperity.”
This series of actions by Trump has sparked renewed discussions regarding the independence of the Federal Reserve as markets remain vigilant about his attempts to influence key leadership positions within this crucial institution.
*This content does not constitute investment advice.