Trump Demands Rate Cut as Fed Hikes Interest Rates to 3.75% - Bitcoin Reacts
President Donald Trump has called for a significant reduction in interest rates after the Federal Reserve raised them to 3.75%-4% earlier this week. The central bank's decision was unanimous, with all 18 officials voting in favor of the hike.
In a statement on Truth Social, Trump demanded that the Fed slash interest rates to 1% or lower, arguing that the US deserves near-zero borrowing costs due to its creditworthiness.
He also claimed that cutting trade with surplus countries could add at least $1.5 trillion a year to federal coffers. However, fact-checkers have previously called similar claims made by Trump 'overstated.'
The Fed's decision to hike interest rates has been met with opposition from some quarters, including Trump. He had threatened to cut off trade with surplus countries if the Fed refused to ease policy.
Bitcoin and Gold prices reacted positively to the news, with Bitcoin jumping in the minutes after the announcement. However, it is unclear whether this trend will continue as traders still price in another hike before year-end.