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Recently, U.S. President Trump has publicly criticized Fed Chairman Powell multiple times, accusing him of failing to actively drop the Intrerest Rate, putting pressure on the U.S. economy. Trump even suggested that if Powell does not cooperate with the rate cut policy, he may be dismissed.
Trump believes that with the current inflation rate approaching the Fed's 2% target, Powell should immediately take measures to drop interest rates, thereby lowering borrowing costs and stimulating the real estate market and consumer demand. He claims that due to high interest rate policies, the U.S. loses hundreds of billions of dollars in interest expenses each year.
However, well-known cryptocurrency analyst and founder of "Into The Cryptoverse" Benjamin Cowen holds a different view. He defended Powell on social media, questioning whether Trump's and the market's obsession with lowering the Intrerest Rate is reasonable.
Kowen pointed out that under Powell's leadership, the Fed successfully dropped the inflation rate from a high of 9% to nearly 2%, while keeping the unemployment rate stable at around 4%. More notably, the stock market, Bitcoin, and gold prices all reached historic highs, which are strong evidence of robust economic development.
Kowen stated on social media: 'Put yourself in Powell's current situation. He successfully reduced the inflation rate from 9% to 2%, while keeping the unemployment rate at 4%. The stock market, Bitcoin, and gold prices have all reached new highs. Yet, people are calling for his resignation. Since the economy is performing so well, why is there still a need to drop interest rates?'
This viewpoint has sparked heated discussions online, with many people beginning to reconsider the Fed's monetary policy and its impact on the economy. Some argue that, in the context of a strong economic performance, excessive drops in interest rates could lead to inflation risks, affecting the long-term stable development of the economy.
With the continuous changes in the economic situation, the policy orientation of the Fed will continue to receive close attention from all parties. In any case, balancing inflation control, employment rate, and economic growth will be a persistent challenge faced by the Fed.