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Former President Donald Trump has openly criticized Federal Reserve Chair Jerome Powell for his decision to maintain current interest rates, which has left the U.S. monetary policy unchanged. This decision appears to have impacted the cryptocurrency market, particularly Bitcoin, which has shown minimal price movement since the announcement.

Trump Criticizes Powell Over Interest Rate Policy

In a recent statement shared on his Truth Social platform, Trump lashed out at Powell, calling him “the worst” and accusing him of costing the U.S. billions of dollars. Trump’s criticism stems from Powell’s refusal to cut interest rates, a move that many believe could stimulate economic growth and investor confidence.

“Too Late—Powell is the WORST. A real dummy, who’s costing America $Billions!” wrote Trump.

Trump’s comments follow the Federal Reserve’s decision to maintain the federal funds rate in the range of 4.25% to 4.5%. This decision was made during the June meeting, where policymakers unanimously agreed to hold steady amid ongoing economic uncertainty.

Bitcoin Stuck in Neutral

Following the Federal Reserve’s announcement, Bitcoin has struggled to break out of its recent price range. The cryptocurrency has hovered around $104,000, with fluctuations as narrow as 0.1% to 0.28%. Over the past two weeks, Bitcoin has seen only a modest gain of 0.3%, disappointing traders who had hoped for a more robust rally.

The Fed’s cautious approach has seemingly paused Bitcoin’s upward momentum, leaving many in the crypto market questioning when the next significant price movement will occur. The largest cryptocurrency by market cap has been closely tracking macroeconomic signals, including interest rate decisions and inflation trends.

Why Is the Fed Holding Interest Rates Steady?

On June 18, Federal Reserve Chair Jerome Powell explained the decision to maintain the current interest rate policy. He emphasized a “wait-and-see” approach, citing the need to better understand the economic impact of external factors such as tariffs and inflationary pressures.

“We have to learn more about tariffs. I don’t know what the right way for us to react will be,” said Powell during a press conference.

Powell added that the Federal Reserve is closely monitoring economic data before making any adjustments to its monetary policy. The central bank’s decision to hold rates in the restrictive range of 4.25% to 4.5% has been met with criticism, as it has reportedly dampened investor confidence and slowed economic growth projections.

Economic Outlook and Inflation Concerns

In addition to maintaining interest rates, the Federal Reserve has revised its economic projections for 2025. The updated forecasts indicate slower GDP growth and higher inflation, with the latter now expected to reach 3%—well above the Fed’s 2% target. This suggests that inflationary pressures may persist longer than initially anticipated.

The Fed’s decision has also impacted traditional financial markets. The Dow Jones Industrial Average dropped 0.10%, while the S&P 500 saw a slight decline of 0.03%. In contrast, the Nasdaq Composite managed a modest gain of 0.13%. However, overall stock prices had been trending higher before the Fed’s announcement.

Crypto Market Reaction

The cryptocurrency market has also felt the effects of the Fed’s decision. The total crypto market capitalization fell by 2.3% in the past 24 hours, bringing it down to $3.3 trillion. Major cryptocurrencies such as Bitcoin, Ethereum, and Solana experienced declines ranging from 0.2% to 1.6%.

Additionally, overall crypto trading volume dropped by 15%, falling from $120 billion to $101 billion on June 19. This decline reflects reduced investor activity and a cautious market sentiment following the Fed’s announcement.

What Lies Ahead?

The Federal Reserve has signaled the possibility of two interest rate cuts by the end of the year, although this projection aligns with its earlier forecast from March. Powell reaffirmed the central bank’s patient approach, stating:

“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.”

Despite increasing pressure from the White House to lower interest rates, the Fed remains firm in its current policy. Trump has intensified his attacks on Powell, describing him as “stupid” and predicting that rates would remain unchanged, which has proven accurate thus far.

As the Federal Reserve continues to navigate uncertain economic conditions, both traditional and cryptocurrency markets are likely to remain volatile. Investors are advised to stay informed and closely monitor macroeconomic developments that could influence asset prices.

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