Kevin Hassett, the National Economic Council’s director, an advisory board to former President Trump, recently revealed that he is in “regular” discussions with Federal Reserve Chairman, Jerome Powell. This news was reported on February 16, 2025, at 20:32 GMT+1.
In a recent interview on CBS’ Face The Nation, Hassett was asked if he intended to influence interest rates through his meetings with the Federal Reserve Chairman. The advisor responded in the negative, emphasizing Powell’s independence and respect for the Federal Reserve’s autonomy. He also highlighted the need to consider the president’s views, given his position as the head of the state.
Hassett argued that the Trump administration has already reduced long-term rates, pointing to a 40 basis point drop in 10-year Treasury rates as proof that the market anticipates decreasing inflation. Lower interest rates generally encourage investments in cryptocurrencies and other risky assets by facilitating affordable credit access for market participants.
However, in a recent testimony before the Senate Banking Committee on Feb. 11, Jerome Powell suggested that the Federal Reserve is not in a rush to adjust interest rates. This stance casts uncertainty over potential rate cuts in 2025.
Following this, the US Bureau of Labor Statistics released its January 2024 Consumer Price Index report on Feb. 12, which indicated higher-than-projected inflation figures. The report stated that annual inflation in January 2025 was at 3%, a 0.1% increase over expectations. This spike led to Bitcoin’s value falling below $95,000 as investors braced for a high-interest-rate environment in the future.
Factors such as persistent inflation, potential trade wars, and other macroeconomic threats have led investors to approach risk-on assets like crypto with caution. Current data from the Chicago Mercantile Exchange’s (CME) FedWatch tool shows that only 3% of market participants expect a 25 basis point cut in the Federal Reserve’s interest rates at the March 2025 meeting.
