Trump Blasts Fed Chair Powell for Keeping Rates High, Bitcoin Stalls

President Trump is absolutely fuming at Fed Chair Jerome Powell for stubbornly refusing to slash interest rates, keeping America's monetary policy on a tight leash. And guess what? Bitcoin's been stuck in the mud ever since!

Trump let loose a scathing rant on Truth Social, his platform under Trump Media & Technology Group, totally slamming Powell's iron grip on interest rates.

"Too Late—Powell is the WORST. A real dummy, who’s costing America $Billions!" Trump blasted in his fiery post.

And that's not all. He even threw in a shoutout to a National Mortgage News piece, where the regulator for Fannie Mae and Freddie Mac straight-up called for Powell to step down if he keeps this rate nonsense going.

Despite the Fed's choice to keep rates steady at a brutal 4.25% to 4.5%, Bitcoin's been frozen, barely budging since the Fed's unanimous June vote to stick with the status quo. The crypto giant's been hovering around $104,000, with pathetic gains of just 0.28% to as low as 0.1%.

It looks like the Fed's cautious moves have slammed the brakes on Bitcoin's recent surge, leaving traders and the President himself totally frustrated. In the last two weeks, the top dog in crypto has only crawled up by 0.3%.

Why is Jerome Powell Digging in His Heels on Rate Cuts?

On June 18, the Federal Reserve unanimously decided to play it cool and keep their "wait-and-see" game strong on the current monetary policy.

According to CNBC, Fed Chair Powell told the press that policymakers are "well positioned to wait" before making any more rate moves. He also hinted that Trump's tariffs are starting to mess with inflation.

"We have to learn more about tariffs. I don’t know what the right way for us to react will be," Powell admitted during the press conference, as quoted by CNN Business.

"I think it’s hard to know with any confidence how we should react until we see the size of the effects," he added.

Holding rates at 4.25% to 4.5% is seen as downright restrictive by many, causing investor confidence to plummet. Bloomberg also noted that the Fed's slashed its economic growth forecast for 2025. Lower GDP predictions could mean less consumer spending, weaker investments, or global headwinds.

The inflation forecast for 2025's been jacked up to 3%, blowing past the Fed's 2% target. This suggests that inflation might be stickier than anyone thought.

After the Fed's stubborn refusal to cut rates and its gloomy economic outlook, U.S. stocks took a nosedive.

Reuters reported that the Dow Jones Industrial Average tanked by 0.10% from the day before, while the S&P slipped by 0.03%. On the flip side, the Nasdaq Composite actually edged up by 0.13%.

But hey, stock prices were generally soaring before the Fed's announcement dropped.

Over in the crypto world, the total market cap took a 2.3% hit in the last 24 hours. It's now sitting at a cool $3.3 trillion, after big players like Bitcoin, Ethereum, and Solana saw drops ranging from 1.6% to 0.2%.

Even the overall crypto trading volume crashed by 15% post-Fed announcement, falling from $120 billion to $101 billion on June 19.

CBS also dropped the bombshell that the central bank's bracing for inflation to get worse in the coming months. They're also predicting two rate cuts by year's end, sticking to their March forecast.

"For the time being, we are well positioned to wait to learn more about the likely course of the economy before considering any adjustments to our policy stance," Powell declared.

The Fed's decision flies in the face of relentless pressure from the White House to slash rates by two points. Just hours before the big reveal, Trump called out "stupid" Fed Chair Powell for probably keeping rates high. It's just another round in his ongoing feud with the Fed.