U.S President Donald Trump has once again put the Federal Reserve under pressure. He just said immediate rate cuts are a requirement for the next Federal Reserve Chair.
With the next Fed meeting just 1 day away, the timing of Trump’s ultimatum is adding even more heat to an already tense economic moment. How does the crypto market react to this?
Trump’s Rate Cut Demand for the Next Fed Chair
According to a report from Solid Intel, Trump wants the next Federal Reserve leader to guarantee lower interest rates as a core condition for the job. Trump has always said high rates slow the economy, but this time he is making it a strict condition.
By calling rate cuts a “non-negotiable” condition, no rate-cut commitment, no appointment.
This demand raises a big concern. The Federal Reserve is supposed to work independently and be free from political pressure.
If a chair is pushed to cut rates, it can hurt market trust, create volatility, and weaken confidence in the U.S. dollar.
All Eyes on the December 10 Fed Meeting
Meanwhile, attention is already on the Federal Open Market Committee meeting scheduled for December 10. Market indicators like CME FedWatch show nearly 90% odds of a 25-bps rate cut, supported by cooling inflation (2.7% core PCE) and 4.4% unemployment.
Interestingly, Betting platforms like Polymarket and Kalshi show odds of 94–95%, aligning with forecasts from JPMorgan, Standard Chartered, and Nomura.
Impact on Bitcoin and Crypto
Lower interest rates often support risk assets like cryptocurrencies. The last rate cut in October 2025 helped ease market pressure, but Bitcoin, which hit a peak of $126,000 in October, has now fallen to around $90,251, down nearly 23%.
If the Fed signals deeper cuts ahead, risk assets like bitcoin could see a strong reaction, either relief or more volatility, depending on Powell’s tone.
Trust with CoinPedia:
CoinPedia has been delivering accurate and timely cryptocurrency and blockchain updates since 2017. All content is created by our expert panel of analysts and journalists, following strict Editorial Guidelines based on E-E-A-T (Experience, Expertise, Authoritativeness, Trustworthiness). Every article is fact-checked against reputable sources to ensure accuracy, transparency, and reliability. Our review policy guarantees unbiased evaluations when recommending exchanges, platforms, or tools. We strive to provide timely updates about everything crypto & blockchain, right from startups to industry majors.
Investment Disclaimer:
All opinions and insights shared represent the author’s own views on current market conditions. Please do your own research before making investment decisions. Neither the writer nor the publication assumes responsibility for your financial choices.
Sponsored and Advertisements:
Sponsored content and affiliate links may appear on our site. Advertisements are marked clearly, and our editorial content remains entirely independent from our ad partners.
