President Trump expands again to reduce interest rates after reort employment data in the United States. Some analysts hope that new rate drops will generate a positive momentum for Bitcoin.
However, there is no sign that Powell will change his mind. If anything, it's even less likely. The prices could cause unprecedented chaos, and the economy does not need reduction of rate to survive now.
Can Trump oblige reductions to American interest rates?
Earlier in the day, the American work statistics office released His latest report on jobs, which seems quite optimistic about the fears of the recession.
The total use of non -agricultural payroll increased by 177,000, on far expectations, while unemployment has remained stable and wages increased. This prompted President Trump to ask for interest rate reductions again:
President Trump has repeatedly asked for the president of the federal reserve, Jerome Powell, to reduce interest rates. The cryptography industry has also strongly recommended for such a decision, which encourage Investment in risky assets.
However, Powell and other Fed superiors were very clear that the prices are too unpredictable to allow new rate drops.
Powell's position was very consistent. The prices could seriously harm the economy and the federal reserve must keep its powder dry to avoid the future collapse. If it reduced rates after the upturn, the Fed would have a less potential tool in the event of a real crisis.
Trump even threatened to dismiss Powell on the problem of lower rates, but sold after the markets panicked. He cannot legally dismiss Powell; Avoiding such a leading regulator would undoubtedly cause chaos.
After the publication of the job report, the market foreseen Less rate drops, and the CME reported that an adjustment in May is practically impossible.
To put it frankly, there is a very low chance that Trump will soon obtain his desired rate drops. Justin Wolfers, an economist at the University of Michigan, explained why the Haussier report really makes drops in less likely rate:
“I am almost sure that the Fed remains pending at its next meeting. The real economy (so far) is strong enough not to justify a rate drop. And the big questions are all just on the horizon. Powell was clear: he doesn't want to guess what's going on on this horizon, he wants to wait and see. The report is absolutely legitimate. said.
President Trump wants these rate drops, but cannot force the problem without causing bigger problems. Because the prices are so chaotic and unpredictable, false rumors have moved the cryptography market several times.
Traders should remain cautious about speculation that seems too beautiful to be true.
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