Anushka Basu
2 min read
Trump wants Federal Reserve to cut rates by 100 bps originally appeared on TheStreet.
US President Donald Trump renewed his demand for the Federal Reserve to make a significant rate cut of 100 basis points or 1% following new data on Wednesday on consumer inflation.
Trump referred to the May Consumer Price Index as a "great" number and said on Truth Social that the "Fed should reduce one full point.
The crypto markets have been on edge ever since. Bitcoin's price dipped to $106,000 on June 12 amid market uncertainties.
In the past, crypto markets have often responded to the Fed's rate cut decisions. The biggest crypto rally followed the Fed's emergency 2020 cuts to 0%, while aggressive hikes in 2022 were ensnared in a crypto bear market.
Following three Fed rate hikes in 2017–2018, the Fed changed direction in 2019 with three quarter-point cuts (0.25%) – again calling for a "mid-cycle adjustment," according to Chair Powell.
This measure was intended to support economic growth in the face of trade war pressures and the global slowdown. And Bitcoin, which had been stuck in the 2018 bear market, responded early in anticipation of easier policy. From about $4,000 early this year, BTC went on a tear, reaching around $13,000 by the end of June, according to Cointelegraph. Interestingly, Bitcoin was perceived as a safe haven during the 2019 US-China trade war.
When inflation started to cool off, the Fed called a halt to rate hikes in 2023, and soon thereafter, the Fed began cutting rates in the post-pandemic era in September 2024 (50 bps). This marked the beginning of a new easing cycle (first cuts in 4 years), as per reports.
The immediate crypto market response was bullish: on the day of the September 2024 cut, the price of Bitcoin soared by 2–3%, breaking through the $62,000 barrier and reaching its highest level since the 2021 highs.
Drawing from historical data and the Fed governor's willingness for a rate cut, a 100-basis-point cut could inject liquidity into markets and potentially create a significant rally in crypto. Assuming inflation stays low, a 100 bps cut could turbocharge risk appetite, taking Bitcoin and altcoins above their recent highs.
Trump wants Federal Reserve to cut rates by 100 bps first appeared on TheStreet on Jun 12, 2025
This story was originally reported by TheStreet on Jun 12, 2025, where it first appeared.
