Trump criticizes Fed for cutting interest rates at a New York Bitcoin bar

Former President Donald Trump criticised the Federal Reserve’s decision to cut interest rates by 50bps, questioning whether the move indicated an economic downturn or political manoeuvring.

Speaking at a Bitcoin-themed bar in New York City on Wednesday, Trump expressed scepticism, stating, “The economy would be very bad, or they’re playing politics, one or the other. But it was a big cut.” The cut comes after the Fed’s efforts to control inflation, which peaked at 9.1% in 2022.

related reading：The Fed's 50 basis point interest rate cut caused Bitcoin to break through $60,000. Is Bitcoin returning to $70,000 soon?

Trump launches platform World Liberty Financial

Trump’s growing interest in digital currencies took centre stage earlier this week when he and his sons announced the launch of their new cryptocurrency platform.

During a livestream with billionaire Steve Witkoff, Trump declared, “crypto is something we have to do.” The new platform, World Liberty Financial, is set to introduce a token called WL, promoting financial freedom with minimal government oversight.

related reading：Trump’s WLFI token is exposed in advance! There will be no pre-sale and 63% will be sold to US qualified investors

Trump remains hostile to SEC

Trump has long criticised the SEC’s approach to cryptocurrency, accusing the agency of being “hostile” towards the industry. His platform promises to reduce regulatory barriers, a stance that has divided opinion.

Supporters argue that fewer regulations will spur innovation, while critics worry it could exacerbate issues like fraud and money laundering, especially in light of the FBI’s report showing a 45% rise in crypto-related scams in 2023, amounting to $5.6 billion in losses.

The timing of the Fed's interest rate cut is in a sensitive period for the election

Trump’s remarks come just weeks before the US Presidential election, during which economic concerns have taken centre stage. His allies have criticised the timing of the Fed’s rate cut, which they say undermines his campaign’s focus on high prices.

Meanwhile, Vice President Kamala Harris has positioned herself as a defender of the middle class, vowing to lower costs for essential items like healthcare and groceries if elected.