Trump Calls for Immediate Fed Rate Cut Amid Inflation Concerns

• Trump’s Push for Rate Cuts: President Trump calls for immediate Federal Reserve rate cuts, linking inflation to past monetary policies.
• Fed Chair Powell warns that premature rate reductions could harm the economy, emphasizing the need for clear inflation decline.
• Bitcoin dropped after the CPI report but rebounded 4.4%, with options traders maintaining a bullish outlook.

President Donald Trump has urged the Federal Reserve to lower interest rates immediately, attributing rising inflation to previous monetary policies. He advocates for rate cuts alongside his proposed tariffs on foreign imports as part of his broader economic strategy.

Powell Cautions Against Premature Rate Cuts

Federal Reserve Chairman Jerome Powell expresses caution through his statements about ongoing elevated inflation. The Chairman urges the population to avoid early interest rate cuts because they may hurt the economic system. Powell states that the Federal Reserve will wait until strong evidence shows declining inflation before making any rate modification.

Financial markets have experienced instability due to differing economic perspectives. Bitcoin’s price dropped from $96,500 to $94,000 following the Consumer Price Index (CPI) report. This decline led to significant losses for some investors. However, Bitcoin later rebounded to $98,000, marking a 4.4% increase from its lowest point of the day.

Options Market Shows Bullish Sentiment

Despite market fluctuations, options traders maintain a bullish outlook on Bitcoin. A majority favor call options, particularly those expiring on February 14. These contracts have strike prices between $97,000 and $100,000, signaling confidence in Bitcoin’s potential price appreciation.

Until now Trump’s momentum to apply interest rate reductions together with import levies continues to serve as a core strategy for the administration to address economic issues. Experts are uncertain about the effectiveness of these measures because they continue studying their potential outcomes.

Financial asset evaluation and investor interest is aligned with the observation of economic policy dynamics. The anticipated changes in fiscal and monetary approaches will control the movement patterns of various asset classes and Bitcoin stands among them. Economic analysts closely monitor the current relation between the White House and Federal Reserve.