This is the Beginning of the End: Trump Yet Again Building a Bullish Ramp for Bitcoin

  • Trump pressuring the fed for the rate cuts before Wednesday meeting
  • Cracks have begun to appear in the growing US economy
  • Early signs of warning are showing, After Deutsche bank, Citibank to cut jobs
  • This is rocket fuel for Bitcoin

This week the Federal Reserve will most likely cut interest rates for the first time since 2008 when the economy was in deep recession.

The exchange rate, likely to be small, will end that era of gradual rate increases that were pushed with the intention of returning the economy to its “normal” state.

The Fed’s approach largely worked as unemployment is at a 50-year low, wages are rising, and the economy is growing.

But the rate cut sends a signal that this is as good as it gets.

Trump Pressuring the Fed for the Rate Cuts Before Wednesday Meeting

The Fed’s move on Wednesday, however, will definitely cheer President Trump who has been constantly pressuring the Fed for the rate cuts, saying the economy would have gone up “like a rocket,” had the Fed done right.

According to him, the Fed

“acted too soon and too violently.”

And just days before the meeting, Trump is at it again.

Cracks have Begun to Appear in the Growing US Economy

Though the US economy is growing, there are cracks that have started forming. Manufacturing gauges are slumping, trade spats have the business investment and confidence dwindling, and a potential recession indicator is flashing red — 10-year bonds rate have been lower than those on 3 months govt. securities.

Gross domestic product has also declined to 2.1 percent in the second quarter from 3.1 percent growth in the first quarter.

The Fed chair, Jerome Powell, has been signaling a possible rate cut. This anticipation has the stock soaring and consumer interest lowering.

Early Signs of Warning are Showing

The target interest rate of the Fed stands between 2.25 and 2.50 percent.

“We think we’re in the beginning of the end,”

said Subadra Rajappa, head of United States rates strategy at Société Générale. Her team is expecting a downturn, and further rate cuts in 2020.

Cutting rates also affect banks adversely. After Deutsche Bank, now Citi bank is planning hundreds of trading job cuts.

These are the “early warning” signs,” says Mati Greenspan, senior analyst at eToro on twitter who sees it ending ”badly” because ”when rates are low, banks cannot compete.”

This is Rocket Fuel for Bitcoin

The Fed cutting the interest rates means a weaker USD, which means stocks are going to soar yet again after hitting all-time highs in the recent weeks. But stocks are not the only ones that will surge, Bitcoin will benefit from the weaker USD as well.

According to Morgan Creek’s Anthony Pomliano, cutting interest rates and printing money (QE) are “rocket fuel” for Bitcoin.

During the time of job cutting, Jim Reid, the head of global fundamental credit strategy at the Deutsche bank had this to say,

“If central banks are gonna be this aggressive, then alternative currencies do start to become a bit more attractive.”

Bitcoin (BTC) Live Price

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