{"id":422269,"date":"2026-03-17T10:18:16","date_gmt":"2026-03-17T04:48:16","guid":{"rendered":"https:\/\/dripp.zone\/news\/trump-urges-fed-rate-cut-as-inflation-threat-grows-crypto-news\/"},"modified":"2026-03-17T11:38:50","modified_gmt":"2026-03-17T06:08:50","slug":"trump-urges-fed-rate-cut-as-inflation-threat-grows-crypto-news","status":"publish","type":"post","link":"https:\/\/dripp.zone\/news\/trump-urges-fed-rate-cut-as-inflation-threat-grows-crypto-news\/","title":{"rendered":"Trump Urges Fed Rate Cut as Inflation Threat Grows – Crypto News"},"content":{"rendered":"

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US President Donald Trump has again pressured the Federal Reserve to cut interest rates immediately, saying at a White House meeting that they should have a \u201cspecial meeting\u201d to reduce rates. <\/p>\n

\u201cWhat\u2019s a better time to cut interest rates than now? A third-grade student would know that,\u201d Trump added, according to videos shared<\/a> on X.\u00a0<\/p>\n

Trump has reiterated his calls for lower rates after stating on Truth Social on Thursday that the Federal Reserve chair \u201cshould be dropping interest rates, IMMEDIATELY.\u201d\u00a0<\/p>\n

The president argued in January that the US should have \u201csubstantially lower\u201d rates and \u201cthe lowest in the world,\u201d labelling Powell \u201ctoo late\u201d and claiming he is \u201churting our country, and its National Security\u201d by maintaining high interest rate levels<\/a>.<\/p>\n

Trump has advocated for lower rates to reduce the cost of servicing the massive $39 trillion US national debt and stimulate economic growth, housing, and the stock market. <\/p>\n

Lower rates can also push investors towards higher-risk assets like stocks and crypto. Cheaper borrowing costs also fuel broader market liquidity, meaning more money flows into speculative assets.<\/p>\n

No rate changes likely at Fed\u2019s Wednesday meeting\u00a0<\/h2>\n

The US central bank kicks off its two-day March meeting on Tuesday and is slated to announce its rate decision on Wednesday.<\/p>\n

However, CME futures markets paint a different picture, currently indicating<\/a> a 99% probability that rates will remain unchanged in the 3.50% to 3.75% this week. <\/p>\n

The outcome for the April 29 meeting is similar with a 97% probability of no change.\u00a0<\/p>\n

Related: <\/strong><\/em>Higher CPI print for March already \u2018baked in\u2019 to BTC price \u2014 Analysts<\/strong><\/em><\/a><\/p>\n

This is despite the expectation that Trump\u2019s pick for Fed chair replacement, Kevin Warsh, who will take the helm in mid-May when Powell\u2019s term ends, may be more open to cutting rates.<\/p>\n

The war with Iran has also caused a surge in oil prices, which means higher fuel costs and is likely to push up food and other goods prices via higher transport costs, leading to higher inflation, potentially prompting the Fed to raise rates<\/a>.\u00a0<\/p>\n

The current rate of inflation in the US remained steady at 2.4% in February, but it is expected to rise in March, according<\/a> to Trading Economics.\u00a0<\/p>\n

US interest rates have remained unchanged since December. Source: <\/em>TradingEconomics<\/em><\/a><\/figcaption><\/figure>\n

Fed will play the waiting game\u00a0<\/h2>\n

With the US-Iran conflict\u2019s impact on rising oil prices<\/a>, \u201ctraders have already priced in the likelihood of zero cuts this year,\u201d Jeff Mei, chief operations officer at the BTSE exchange, told Cointelegraph.<\/p>\n

This should mean that there will be \u201cless downward pressure on crypto asset prices,\u201d because oil\u2019s impact on inflation is \u201cunclear at this point,\u201d and the Fed will likely \u201ccontinue to wait out the situation.\u201d<\/p>\n

Magazine: <\/strong><\/em>Metaplanet\u2019s Japan Bitcoin bet, Bithumb ordered suspension: Asia Express<\/strong><\/em><\/a><\/p>\n