President Trump is again putting pressure on the Federal Reserve to cut interest rates. This policy, which aims to promote economic growth, could serve to further increase the attractiveness of Bitcoin.
Trump again criticized the Fed’s reluctance on Twitter. The reason for this is that the USA is at a disadvantage compared to other countries due to its relatively high interest rates.
Trump wants further rate cuts
President Donald Trump attacked Fed Chairman Jerome Powell and the institution itself. Trump believes that the central bank’s reluctance to cut interest rates as low as other nations puts the country at a disadvantage.
The president said the Federal Reserve should follow nations like Germany that “pump money into their economy.” The German interest rate is currently -0.3 percent. Negative interest rates, such as those in Germany, Japan, Sweden, Denmark and some other nations, are a rather extreme economic policy. The idea behind negative interest rates is to promote growth by promoting borrowing, not saving.
Some European nations have adopted controversial policies after the 2008 financial crisis. Since then, more countries have experimented with negative interest rates.
A blessing for Bitcoin?
The next Federal Reserve meeting will take place on March 17th and 18th. According to a recent report in Bloomberg, Jerome Powell said Friday that the central bank would act “appropriately” to support the economy.