Trump Demands Rate Cuts, Treasury Chief Backs Stablecoins: US Crypto Policy Takes Center Stage

On June 19, 2025, President Donald Trump intensified his criticism of Federal Reserve Chair Jerome Powell, branding him a “fool” and demanding immediate rate cuts to bolster the economy. Meanwhile, Treasury Secretary Scott Bessent championed Trump’s cryptocurrency policies, asserting that stablecoins will “lock in” the dollar’s global dominance.

Trump’s Escalating Feud with Powell

President Trump unleashed a scathing attack on Federal Reserve Chair Jerome Powell via Truth Social on June 19, 2025, labeling him “the worst ever” and a “fool” who is “costing America billions of dollars!”

The June 19 outburst echoed Trump’s earlier criticism on June 4, when he called Powell “Too Late Powell” following a disappointing ADP jobs report showed only 37,000 private-sector jobs added in May, far below the expected 110,000.

Trump also reposted a National Mortgage News article quoting the regulator of Fannie Mae and Freddie Mac, who urged Powell to “cut rates or quit,” further intensifying political pressure on the Fed chairman.

The Federal Reserve held its benchmark interest rate steady at 4.25%–4.50% on June 19, marking its fourth consecutive meeting without a change—an outcome that met market expectations but frustrated Trump.

Powell warned of tariff-driven inflation risks and reiterated the Fed’s data-dependent approach before considering rate cuts—a stance that drew sharp criticism from Trump, who has been calling for immediate monetary easing.

The Fed’s updated dot plot showed a divided outlook among officials: seven of the 19 projected no rate cuts in 2025, two forecast a single 25-basis-point cut, eight expected two 50-basis-point cuts, and two anticipated three 75-basis-point reductions.

Trump’s escalating pressure has reignited concerns about the Fed’s political independence. Following a May 30 meeting with President Biden at the White House, Powell issued a rare statement reaffirming the central bank’s nonpartisan mandate, insisting that rate decisions are based on economic data—not political influence.

Market volatility followed Trump’s latest remarks, with the dollar falling to a three-year low and equities sliding, as investors grew wary of prolonged high rates and rising trade tensions.

Bessent’s Vision for Crypto and Dollar Dominance

Treasury Secretary Scott Bessent, posting on June 19, 2025, declared that Trump’s cryptocurrency push, particularly through stablecoins, will cement the dollar’s global supremacy. “Stablecoins are not a threat to the dollar; in fact, they can lock in dollar supremacy,” Bessent stated, noting that stablecoins could become major buyers of U.S. Treasuries, as seen in Nigeria where dollar-backed stablecoins facilitate transactions without holding physical dollars.

He urged Congress to pass the GENIUS Act to establish federal rules for stablecoin issuance and trading.

Bessent’s comments built on a March 7 White House crypto summit, where he and Trump discussed a government-held digital asset reserve using seized Bitcoin, avoiding taxpayer funds.

Bessent called cryptocurrency “one of the most important phenomena in the world today,” criticizing the Biden administration’s attempts to “kill” the industry and praising Trump’s vision for regulatory clarity.

Economic Tensions and Market Impacts

The clash between Trump’s economic agenda and the Fed’s cautious stance has heightened market uncertainty. Trump’s demands for rate cuts have escalated dramatically: initially calling for a 100-basis-point cut, he later doubled down on a 200-basis-point reduction, and recently insisted on a 250-basis-point slash to counter economic slowdown fears. These aggressive calls, voiced on Truth Social and at economic forums, have intensified pressure on Powell, whom Trump accuses of stifling growth with high rates.

Trump’s tariff policies, central to his economic strategy, have complicated the Fed’s calculations. Powell noted that tariffs could drive persistent inflation, delaying rate cuts.

Despite Trump’s pressure, Polymarket traders signal a 93% probability that the Fed will keep rates unchanged at its July 29-30, 2025, meeting, reflecting caution due to sticky inflation and resilient economic data.

Trump’s crypto and tariff agendas, paired with his relentless feud with Powell, continue to shape global economic debates.