- Howard Lutnick criticizes Jerome Powell’s interest rate policy.
- Maintenance of current rates sparks controversy.
- Crypto markets watch U.S. macroeconomic policy closely.
Lutnick’s criticism underscores potential economic consequences of the Fed’s decision to maintain high interest rates.
Howard Lutnick publicly criticized Jerome Powell for not reducing U.S. interest rates. The current rates, which remain at 4.25%-4.5%, are described by Lutnick as excessively high. He challenges Powell’s assertion that tariffs contribute to inflation, pointing out inaccuracies in identified factors. Powell defends the decision, emphasizing the importance of maximum employment and stable prices. He maintains an unchanged monetary policy, aiming for flexibility to respond to any economic developments.
Fed Chair Powell is ‘obviously afraid of his own shadow’ for not reducing interest rates due to some ‘unknown future’. The U.S. suffers the highest rates of any first-class country, which makes no sense.” – Howard Lutnick, U.S. Secretary of Commerce
The decision to keep rates steady affects traditional financial markets and digital assets. High rates generally deter investment in riskier assets like cryptocurrencies. Bitcoin and Ethereum could experience market shifts if lower rates are anticipated. Economic expert DOGEai argues that high rates financially burden taxpayers, suggesting negative implications for the broader economy. The historical precedence of presidential interventions in Fed decisions can often lead to market volatility and speculation. Insights indicate potential regulatory or economic shifts if long-term high rates persist, impacting crypto investment trends.
