Trump Calls for Rate Cuts Amid Positive Labor Market Signs – Good Sign for Crypto?

President Trump once again calls for interest rate cuts after U.S. employment data shows positive signals. Some analysts hope that a new interest rate cut will create a positive momentum for Bitcoin.

However, there are no signs that Powell will change his intention. If so, the possibility is even less. Tariffs could cause unprecedented chaos, and the current economy does not need interest rate cuts to survive.

Can Trump Force Interest Rate Cuts in the U.S.?

This morning, the U.S. Bureau of Labor Statistics published the latest employment report, which seems quite positive in the context of recession concerns.

Total non-farm employment increased by 177,000, far exceeding expectations, while the unemployment rate remained stable and wages increased. This prompted President Trump to once again request interest rate cuts:

President Trump has repeatedly requested Federal Reserve Chairman Jerome Powell to cut interest rates. The cryptocurrency industry also strongly supports this move, which would encourage investment in risky assets.

However, both Powell and other Fed leaders have been very clear that tariffs are too unpredictable to allow further interest rate cuts.

Powell's stance is very consistent. Tariffs could cause serious damage to the economy, and the Federal Reserve needs to hold steady to prevent future collapse. If interest rates are cut after positive news, the Fed would lose a potential tool in case of a real crisis.

Trump even threatened to fire Powell over the interest rate cut issue, but backed down after market panic. He cannot legally remove Powell; removing such a prominent manager would certainly cause chaos.

After the employment report was published, the market predicts fewer interest rate cuts, and CME reports that an adjustment in May is almost impossible.

Frankly, there is very little chance that Trump will soon achieve his desire for interest rate cuts. Justin Wolfers, an economist at the University of Michigan, explains why the positive report actually reduces the likelihood of interest rate cuts:

"I am almost certain that the Fed will remain unchanged at the next meeting. The real economy (so far) is strong enough to not need interest rate cuts. And the big questions are all ahead. Powell has been clear: He does not want to guess what lies ahead, he wants to wait and see. The report is completely valid. The White House's interpretations are a different matter," he said.

President Trump wants to cut interest rates but cannot force the issue without causing larger problems. Because tariffs are too chaotic and unpredictable, misleading rumors have moved the cryptocurrency market on several recent occasions.

Traders should be cautious of speculations that seem too good to be true.