Trump beats expectations by urging the Fed to cut fees after GDP jumped 3% in the second quarter.
Currently, the market is priced at a 65% chance of interest rate reductions in September as inflation cools.
Crypto Markets remains optimistic and is thinking about whether the Fed will act today.
Trump is really unstoppable!
The US economy grew faster than last quarter, and President Donald Trump wasted no time to increase pressure on the Federal Reserve.
In a post about the truth social, the president called Fed Chairman Jerome Powell again:
“2Q GDP is just going out: Much better than expected! “Too slow” Now we need to lower the rate. There is no inflation!
The message is clear. Trump wants to cut his fees and he wants it now. However, the Fed still doesn’t seem to be ready to move. But you’ll know immediately.
Powell is under pressure, but no immediate rate reductions are expected
The Federal Reserve is widely expected to avoid changing interest rates from 4.25%-4.50% at today’s meeting. But Trump’s criticism is putting real pressure on central banks to ease stronger economies and inflation.
According to CME data, the market is priced at a 65% chance of interest rate reductions in September. For more details, attention will be paid to Powell’s press conference later today.
Trump has long accused Powell of not being able to act and even gave him a nickname “too late.” That feud continued last week during a tour of the Fed’s renovation project.
What is the 3% GDP growth behind the surprise?
According to the latest data, US GDP rose 3% in the second quarter, with economists forecasting well above 2.4%. This marks a strong rebound as it is the first contraction in three years after the economy contracted 0.5% in the first quarter.
Turnarounds occurred as imports fell, easing overall growth resistance, but consumer spending became stronger.
However, not all signs refer to perfect strength. One of the key measures, sales to private domestic buyers, fell by just 1.2% from 1.9% in the last quarter. It’s the slowest pace since 2022.
Inflation is cooling – is the Fed ready to act?
There is another reason the market wants. The PCE price index, the Fed’s preferred inflation gauge, slowed to 2.1% in the second quarter, down from 3.7%. The core PCE has also dropped to 2.5%.
This is a clear indication that inflation is being eased, giving the Fed more room to cut fees if necessary. Still, central banks could postpone until they are convinced that the trend will stick.
Also Read: White House Releases Crypto Plan, Bitcoin Prepares Details
Crypto Market Outlook: In any case, it’s tough
Despite the uncertainty about the Fed’s next move, Crypto Markets is confident.
If you get a rate reduction, pump
If interest rate reductions are not available, pump it
do you understand?
It’s all noise.
– James Wynnreal (@jameswynnreal) July 30, 2025
With inflation cooling and economic rebound, traders see strength in either direction. The September cuts could bring fresh momentum. But even if the Fed is stable for now, it shows stability, and that’s what the market can work for.
As always, all eyes will be in Powell’s tone later today. However, in the world of crypto, the big picture is beginning to look a little more promising.
