President Trump is continuing to pressure the Federal Reserve for dragging its feet on interest rate cuts. For some, such aggressive economic policy is yet another inadvertent advertisement for Bitcoin for the US president.
Donald Trump recently declared himself as being generally opposed to Bitcoin and cryptocurrency. However, for some analysts, the president is doing a first rate job of making the technology more appealing.
Will Trump’s Aggressive Economic Policy Drive People Towards Bitcoin?
Taking to Twitter earlier today, President Trump stated that he would like to see the Federal Reserve cut interest rates soon. He argues that if the economy takes a downturn in the future then it will be more costly to take action then, rather than preemptively.
It is far more costly for the Federal Reserve to cut deeper if the economy actually does, in the future, turn down! Very inexpensive, in fact productive, to move now. The Fed raised & tightened far too much & too fast. In other words, they missed it (Big!). Don’t miss it again!
— Donald J. Trump (@realDonaldTrump) July 22, 2019
In another Tweet, he writes:
“With almost no inflation, our Country is needlessly being forced to pay a MUCH higher interest rate than other countries only because of a very misguided Federal Reserve.”
Business Insider has described the president’s Tweets towards the Federal Reserve as being a “forceful pressure campaign”. Along with publicly encouraging the supposedly politically independent central bank to cut rates, the president has also recently suggested a return of quantitative easing (printing money).
Trump’s economic policies have drawn considerable attention from the Bitcoin and wider crypto asset industry. Since Bitcoin represents an asset free from the meddling of politicians, policies that result in a less powerful dollar in the world are met frequently met with scorn from those in favour of the fintech innovation.
Bitcoin advocates frequently hold that assets that are strictly limited in supply provide a much better form of money than fiat currencies that are prone to the whims of global policy makers. For many, fiat currency is an historical anomaly and its use as the dominant medium of exchange on the planet cannot continue indefinitely. The merits of a sound asset will eventually shine over the ever-devaluing dollars, euros, and pounds of the world.
Highlighting this earlier today was trader, analyst, and general Bitcoin proponent Luke Martin:
Trump is bullying the Fed to cut now.
He doesn’t have to like Bitcoin, but Bitcoin holders do have to like how the macro picture is coming together. https://t.co/pwlO3qbkkb
— Luke Martin (@VentureCoinist) July 22, 2019
In the above Tweet, Martin argues that Trump’s latest posturing versus the Federal Reserve is yet another example of a politician deliberately weakening a national currency at the expense of their people for their own political ends.
He states that those who choose to hold Bitcoin must like Trump’s aggressive economic policies since they further demonstrate the superiority of Bitcoin over the dollar and other fiat currency.
It is not just Donald Trump’s domestic economic policy that is believed to be encouraging Bitcoin adoption around the world. Many believe that the political instability caused by the ongoing China Trade War, as well as the Iranian nuclear accord are creating the “perfect storm” for people to want to opt out of national currencies in favour of an asset class that is entirely unconnected to national and international politics, such as Bitcoin.
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