President Trump has once again lambasted the US Federal Reserve for keeping the interest rates way too high.
In his recent tweet, he makes a case against a strong US dollar on the heels of weak manufacturing data, which is bullish for Bitcoin.
As I predicted, Jay Powell and the Federal Reserve have allowed the Dollar to get so strong, especially relative to ALL other currencies, that our manufacturers are being negatively affected. Fed Rate too high. They are their own worst enemies, they don’t have a clue. Pathetic!— Donald J. Trump (@realDonaldTrump) October 1, 2019
“Bitcoin Rocket Fuel”
As reported by U.Today, the Fed cut interest rates by a quarter-point for the first time in more than a decade on Sept. 18. This is major shift in the US monetary policy given that the country’s central bank wanted to tighten the grip on borrowers just one year prior to that.
Anthony Pomplino of Morgan Creek Digital described the rate cut as “Bitcoin Rocket Fuel.” It will weaken the US dollar given by increasing inflation.
Meanwhile, Bitcoin will be getting scarcer with every halvening event (the most recent one is slated to take place in just seven months).
Dollar weakening bullish for BTC
There is a growing debate whether there is a correlation between the Bitcoin price and macroeconomic factors. Fundstrat’s boss Thomas Lee sticks to the narrative that BTC is indeed impacted by the US dollar.
We saw this last year with Fed hikes supporting strong USD and bitcoin down,” Lee told Barron’s back in July.
While Trump claims that he’s not a fan of Bitcoin, he might inadvertently push its price to new highs by pressuring the Fed to continue cutting interest rates.