Trump presses Fed again to cut interest rates next week

• Trump presses Fed to cut interest rates
• Strong jobs report reduces chance of June cuts
• Powell maintains cautious stance on inflation

Former US President Donald Trump reiterated his call for interest rate cuts, even after the release of a stronger-than-expected jobs report for April. The data reinforces the current stance of Federal Reserve Chairman Jerome Powell, who prefers to remain cautious in the face of economic uncertainty.

“WITHOUT INFLATION, THE FED SHOULD LOWER ITS RATE!!!”, Trump wrote on his Truth Social network on Friday. The statement came shortly after the release of a report that showed 177 nonfarm jobs were created in the month, beating expectations of 138. The unemployment rate remained steady at 4,2%.

Despite political pressure, the resilience of the labor market reinforces the Fed's case for keeping monetary policy unchanged, awaiting more data confirming the impact of Trump's recently announced tariffs. The market now sees less chance of rate cuts in the first half of the year.

Odds for a cut at the Fed’s next meeting, scheduled for May 6-7, have fallen below 50%. Traders have also adjusted expectations, predicting fewer rate cuts through the end of 2025.

Trump has frequently spoken out against the Fed's stance, arguing that the central bank should act more quickly to stimulate the economy. Powell, in turn, signaled that there is still uncertainty about the institution's achievement of its dual goals: price stability and full employment.

According to Powell, “there is a strong likelihood that the economy will not make significant progress towards its targets this year.” Despite this, the most recent data suggests that some prices have been falling.

What this means for the cryptocurrency market

Donald Trump’s renewed pressure on the Federal Reserve to cut interest rates has reignited expectations in the cryptocurrency market. Should the Fed decide to heed the call and cut interest rates in the coming months, risk assets such as Bitcoin (BTC) and other cryptos stand to benefit directly.

Falling interest rates often drive demand for alternative and more volatile assets, as investors seek higher returns in lower-yielding environments in traditional markets. In this context, Bitcoin could gain even more traction and test new all-time highs.

If the cut comes to fruition, BTC could break its previous all-time high (ATH) in the coming weeks, paving the way for new cycles of appreciation. Monetary easing tends to favor not only Bitcoin, but the entire crypto market, with utility tokens, DeFi, and altcoins also likely to see significant recovery.

For analysts and investors, Fed policy will continue to be one of the main vectors of influence on the behavior of digital assets in the coming quarters.