As Donald Trump redoubles his criticism of Federal Reserve Chairman Jerome Powell, the markets are reacting strongly. The dollar is weakening, stocks are falling, but cryptoassets are rising significantly. This market configuration illustrates the growing role of the political climate on global financial dynamics.
Trump vs. Powell: The Verbal Escalation
- A new round of criticism: President Trump has once again attacked Jerome Powell, accusing him of hampering growth and maintaining an overly restrictive monetary policy.
- Direct consequences: This rhetoric is fueling speculation about Powell’s potential dismissal in the event of a Republican victory, increasing uncertainty about the future path of interest rates.
Traditional markets are falling
- Dollar and stocks under pressure: Faced with rising political uncertainty, the US dollar index fell, while major stock indices experienced moderate declines. Investors fear prolonged instability in US monetary policy.
- Signals of increased volatility: Markets are now anticipating possible political interference in the Fed’s decisions, making traditional assets less attractive in an uncertain environment.
Cryptocurrencies are benefiting.
- A refuge from monetary chaos: In contrast, the crypto market, led by Bitcoin, has appreciated by several points. The prospect of a weakened Fed is fueling the thesis that digital assets could serve as a hedge against monetary instability.
- A surge in volumes: Exchanges have reported a significant increase in trading volumes, a sign of renewed interest in cryptoassets as an alternative to conventional finance.
Conclusion
The intensification of Donald Trump’s attacks on Jerome Powell marks a turning point: beyond words, the very foundations of US monetary policy are now at stake. In this context, cryptoassets seem to be enjoying renewed legitimacy, not as tools for speculation, but as bulwarks against systemic instability. It remains to be seen whether this momentum can last or whether it will merely be a flash in the pan in the electoral storm.
