Will Trump Get His Rate Cut? Waller Breaks Ranks as July Decision Looms
Key Highlights:
• Fed Governor Waller hints interest rates may be cut as early as July, echoing Trump’s demand for looser policy.
• Inflation rises to 2.4% in May amid growing warnings that Trump’s tariffs are fueling price spikes.
Yello Paradisers! Could President Trump be pulling the Federal Reserve’s strings? In a move that has stirred both curiosity and concern, Fed Governor Christopher Waller has signaled a willingness to slash interest rates at the July FOMC meeting, aligning with Trump’s push for a more accommodative stance.
“I think we’re in the position that we could do this—and as early as July,” Waller stated in a CNBC interview. The remark has sparked renewed debate within the central bank and among investors, with some interpreting it as the first real sign of the Fed yielding to political pressure.
Tariffs Fuel Inflation, Powell Stays Cautious
Meanwhile, Federal Reserve Chair Jerome Powell offered a sobering take: Trump’s aggressive tariff policy is creeping into inflation, which hit 2.4% in May. Powell warned that “new trade barriers are beginning to push up consumer prices,” but stopped short of calling for immediate rate cuts, preferring to “wait and see.”
While Powell remains cautious, Waller is urging preemptive action, asking: “Why wait for a crash before cutting rates?”
This policy split, revealed in the Fed’s “dot plot,” shows just how divided the central bank is, seven members want no cuts, two want one cut, and 10 want two or more in 2025.
Markets Still Not Buying It
Despite the political noise, futures markets aren’t convinced. According to Polymarket, there’s only a 10% chance the Fed will cut in July, with a strong 89% betting on no change.
Waller admitted that even if cuts begin, they should be gradual. “Start slow,” he advised, “we’ve been on pause for six months. Let’s move forward—carefully.”
This approach reflects growing concern that Trump’s economic policies, especially tariffs and aggressive rate demands, may be overheating inflation, even as he argues that high rates are choking U.S. growth.
Implications for Crypto: Is Bitcoin the Real Inflation Hedge?
As U.S. inflation ticks upward and the Federal Reserve wrestles with politics, many investors are once again looking toward cryptocurrency, particularly Bitcoin, as a strategic hedge.
Bitcoin historically rallies during rate cuts and periods of dollar weakening, especially when the Fed appears to lose independence. If the July meeting results in even a symbolic rate cut, crypto trading volumes may soar, as the market prices in a looser monetary regime, and higher future inflation.
This moment underscores why investors are closely watching the latest blockchain news, Ethereum price predictions, and evaluating crypto market analysis for signals of where the cryptocurrency market may head next.
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“Fed signals a July rate cut after Trump’s pressure—but markets aren’t convinced. When political moves disrupt monetary policy, hesitation can cost dearly. Is your #trading prepared for the unexpected Fed pivot or still betting on caution?”
