A Politicized Fed Meets a Crypto-Hungry Market
The post A Politicized Fed Meets a Crypto-Hungry Market appeared on BitcoinEthereumNews.com. The U.S. Federal Reserve is set to cut interest rates on Wednesday, a move that would normally send crypto bulls charging. But this time, the central bank isn’t just tweaking monetary policy — it’s being dragged into a political knife fight that could reshape its independence, with serious consequences for digital assets. For years, the playbook has been straightforward: lower rates mean cheaper money, bonds and savings accounts look boring, and risk-on assets like Bitcoin and Ethereum thrive. That’s how BTC ripped to new highs in 2021–2022 when the Fed kept money dirt cheap. Now, though, rate cuts come with a side of political theater. Trump vs. the Fed The drama kicked off when the Trump White House tried to oust Fed Governor Lisa Cook — a Biden-era appointee — by accusing her of mortgage fraud. Cook called the charges baseless and political, saying the move was “unprecedented and illegal.” On Monday, a Washington appeals court blocked the attempt, meaning she keeps her seat for now. At the same time, the Senate confirmed Stephen Miran, a Trump-aligned economist and former White House adviser, to the Fed’s board of governors. Miran has dropped occasional pro-crypto comments, but his presence raises red flags about the Fed’s neutrality. Democrats fear he’ll act more like a political operative than a central banker, and he’s already declined to commit to leaving his White House role after his Fed term ends in 2026. The optics are clear: Trump wants to bend the Fed toward his policy goals, which almost certainly means easier money, faster rate cuts, and a Fed less insulated from political winds. What That Means for Crypto A politicized Fed is uncharted territory. In theory, a politically dependent Fed might go ultra-dovish — cutting rates faster, pumping liquidity, and juicing markets. But it could…
The post A Politicized Fed Meets a Crypto-Hungry Market appeared on BitcoinEthereumNews.com.
The U.S. Federal Reserve is set to cut interest rates on Wednesday, a move that would normally send crypto bulls charging. But this time, the central bank isn’t just tweaking monetary policy — it’s being dragged into a political knife fight that could reshape its independence, with serious consequences for digital assets. For years, the playbook has been straightforward: lower rates mean cheaper money, bonds and savings accounts look boring, and risk-on assets like Bitcoin and Ethereum thrive. That’s how BTC ripped to new highs in 2021–2022 when the Fed kept money dirt cheap. Now, though, rate cuts come with a side of political theater. Trump vs. the Fed The drama kicked off when the Trump White House tried to oust Fed Governor Lisa Cook — a Biden-era appointee — by accusing her of mortgage fraud. Cook called the charges baseless and political, saying the move was “unprecedented and illegal.” On Monday, a Washington appeals court blocked the attempt, meaning she keeps her seat for now. At the same time, the Senate confirmed Stephen Miran, a Trump-aligned economist and former White House adviser, to the Fed’s board of governors. Miran has dropped occasional pro-crypto comments, but his presence raises red flags about the Fed’s neutrality. Democrats fear he’ll act more like a political operative than a central banker, and he’s already declined to commit to leaving his White House role after his Fed term ends in 2026. The optics are clear: Trump wants to bend the Fed toward his policy goals, which almost certainly means easier money, faster rate cuts, and a Fed less insulated from political winds. What That Means for Crypto A politicized Fed is uncharted territory. In theory, a politically dependent Fed might go ultra-dovish — cutting rates faster, pumping liquidity, and juicing markets. But it could…
What's Your Reaction?
