President Trump once again forces the U.S. Federal Reserve to lower interest rates. The policy, which aims to stimulate economic growth, can serve to further increase the attractiveness of Bitcoin.
Today, Trump once again took Twitter to criticize the Fed's reluctance to follow other nations in dropping negative lands. He suggests that the United States is disadvantageous compared to countries, thanks to its relatively high interest rates.
Trump Still Wants to Lower More Interests
President Donald Trump attacked the US Federal Reserve chief, Jerome Powell, and the institution itself. Trump believes that the central bank's reluctance to lower interest rates as well as other countries makes the country disadvantaged.
As usual, Jay Powell and Federal Reserve are moving slowly. Germany and others are pumping money into their economies. Other Central Banks are much more aggressive. The USA should have the lowest rate for the right reasons. Us …
– Donald J. Trump @realDonaldTrump Instagram photos and videos • Imgwonders March 2, 2020
The President said that the Federal Reserve should follow countries that "pump money into their economies", such as Germany. The interest rate of Germany is now -0.3 percent.
Negative interest rates, like in Germany, Japan, Sweden, Denmark and some other countries, are quite an excessive economic policy. The idea behind negative rates is to encourage growth by promoting borrowing rather than saving.
Some European countries have adopted controversial policy after the 2008 financial crisis. Since then, more countries have experimented with negative rates, and, as Trump has announced both today and before, the US wants to try and tighten a little more than its economy.
A blessing for Bitcoin?
The Federal Reserve will meet on 17-18 March. According to the recent times report in BloombergJerome Powell said on Friday that the central bank will "act as necessary" to support the economy.
While Trump continues to advocate excess rate cuts, it seems likely that the biennial meeting will see a drop. It remains to be seen whether such an interruption will push rates to the negative zone.
Negative interest rates effectively tax taxes on cash holders in a bank. This is expected to encourage those with cash money to use it in the economy.
However, those who are against the risk can respond to such an attack on savings by investing their capital in a more solid money and free of the interference of central bankers or governments. With its completely decentralized consensus model and limited supply, Bitcoin will definitely represent a strong contender for such an investment asset.
BREAKING: Trump calls FED to be a "leader" and push rates to a lower level than other countries.
In other words, Trump calls on the FED to push rates to 0 or even the negative zone.the #Bitco it can save us from this madness!
– The Moon @theMoonCarl March 2, 2020
Many Bitcoin industry analysts believe that crypto assets can help protect individuals' savings from negative interest rates. The Moon (@TheMoonCarl) describes politics as "madness" and describes BTC as a valuable antidote.
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