The standoff comes after fresh inflation data showed consumer prices cooling more than expected, raising speculation over how the Fed’s next move could ripple into digital asset markets.
He claimed the project should have been a $50 million “fix-up,” not a $3 billion overhaul. Reports have disclosed that Powell was previously referred to the Department of Justice for alleged perjury tied to the same costs.
During a recent visit to the Fed to inspect the renovation, Trump once again pressed Powell to cut rates. The president accused the Fed chief of acting “too late” on key policy decisions, calling the damage “incalculable.”
The latest Consumer Price Index showed a 2.7% year-over-year rise in July, lower than the forecasted 2.8%. Monthly CPI eased to 0.2% from the previous 0.3%.
A rate cut in this environment could create a more favorable backdrop for crypto prices, as cheaper borrowing and weaker yields in traditional assets often drive more interest in alternative stores of value like Bitcoin and Ethereum.
His comments align with Trump’s position and add to the market’s expectations that the Fed may shift toward easing sooner. Crypto traders are watching closely, as a dovish Fed stance could ignite rallies across major tokens.
The combination of political heat, legal threats, and softer inflation data is putting Powell in a tight spot. If rate cuts arrive faster than expected, crypto markets could see a surge in momentum — and Bitcoin’s move toward $121,000 suggests investors may already be positioning for it.
Featured image from Meta, chart from TradingView
