Trump Predicts Big Federal Reserve Rate Cut This Week

Federal Reserve Rate Cut and Its Impact on Crypto & Markets

Trump Predicts a Big Move — Markets Brace for a Federal Reserve Rate Cut

President Donald Trump said this weekend that he expects a “big cut” from the Federal Reserve at its meeting this week. He told reporters, “I think you have a big cut… It’s perfect for cutting,” as he returned to Washington. 

Analysts say a quarter-point cut could cause short-term volatility but may help crypto and gold over the coming months if easier policy continues.

Source: Bloomberg

Why The Fed Is Expected To Cut

Economists and traders widely expect the Federal Reserve to lower its benchmark interest rate by 25 basis points at the meeting scheduled for Sept. 17. The FOMC faces a slower jobs market and inflation that has not fully cooled, and many observers think a small cut is the path the central bankers will take.
The Fed’s decision is happening under unusual political pressure. The White House has repeatedly pushed for easier policy, and that has raised questions about the Fed’s independence. Still, they must weigh inflation data and job market strength when it votes.

Crypto Market Right Now 

Global crypto market cap is about $4.04 trillion today, with 24-hour trading volume running in the slight low . Bitcoin still dominates more than half of the market. When big central banks ease policy, total crypto liquidity and trading volumes often rise quickly. At the time of writing the BTC and ETH have seen slight highs in the past 24hrs.

• Bitcoin (BTC): $115,484.
• Ethereum (ETH): $4,633.

Source: Coinmarketcap

If the FOMC cuts rates, cash yields fall. That makes riskier assets look more attractive because safe accounts pay less. Traders and funds may move some money into bitcoin, ethereum, and other crypto projects to chase returns. In the short term this can raise prices and also cause quick swings.

How The Fed Talk Hits Stocks And Gold

Gold rose strongly in recent days and briefly hit record levels, which led to some profit-taking and small dips afterward. Analysts say short-term pullbacks are possible but many still see upside if the FOMC stays dovish

President Trump said he expects a “big cut” from the Federal Reserve this week. That talk has traders watching the reaction closely and is one reason markets are upbeat but cautious today. 

What To Watch Next

• Federal Reserve statement and Chair remarks on Sept. 17 — listen for language about future cuts.

• Bitcoin and Ethereum prices move right after the Federal  Reserve — big swings possible.

• Markets watch FOMC words—The market reacts not just to the cut itself but to what the committee says about future cuts.

•  If the Fed hints at more cuts, stocks and gold could move higher. If the Fed signals cuts are limited, markets may wobble.