Crypto Market Rallies as Trump Plans to Announce Rate-Cut-Friendly Fed Governor

The crypto market is in the green today, rebounding from the decline recorded over the weekend. This comes amid developments such as Trump’s plans to appoint a Fed Governor who will lower rates to replace Adriana Kugler. More details of the trade deal between the U.S. and E.U. have also emerged, with the latter putting tariff countermeasures on hold.

Advertisement Advertisement

Crypto Market Bounces From Red Weekend

TradingView data shows that the crypto market is up almost 2% today, reclaiming a market cap of $3.7 trillion in the process. Bitcoin and major altcoins, including Ethereum, XRP, and Solana, have recorded notable gains to lead this rally.

Source: TradingView; Crypto Market Daily ChartThe Bitcoin price has broken above the psychological $115,000 level, having dropped to as low as $112,000 over the weekend. Meanwhile, Ethereum and XRP have recorded larger gains, up 5% and 7%, respectively.

This crypto market rally has come following a CNBC report that U.S. President Donald Trump plans to announce a new Fed Governor to replace Adriana Kugler in the coming days. Trump has already indicated that he would only appoint individuals who are willing to lower rates to the Fed Board.

This is bullish for the market, considering how a rate cut could inject more liquidity into the market and boost crypto prices. Moreover, as CoinGape reported, the odds of a September rate cut are currently around 80%.

As such, a Fed Governor who supports lowering rates will further ensure that the Fed eases its monetary policies at the next FOMC meeting. It is worth noting that Kugler, a Biden appointee, had voted against a rate cut at the July meeting and could have again voted against a cut at the September meeting.

Additionally, Trump also plans to announce a replacement for the Bureau of Labor Statistics (BLS) commissioner, Erika McEntarfer, following the release of weak July U.S. job data last week.

The president claims that the figures were rigged, which is undoubtedly a relief for the market if true. A weakening labor market could negate the positive impact of a rate cut since it would suggest that the U.S. economy is already in a fragile state.

Advertisement Advertisement

More Details About The U.S. and The E.U. Trade Deal Emerge

A Bloomberg report has also revealed more details about the trade deal between the U.S. and the E.U., which has contributed to the crypto market rally. As part of the deal, the European Union has proposed suspending its countermeasures for six months.

As CoinGape earlier reported, the U.S. and the E.U. reached a trade deal last month, although both parties have yet to sign the agreement. Bloomberg reported that both parties are expected to release a joint statement outlining their respective commitments under the deal.

Notably, Trump had described the E.U. deal as the best deal ever. The crypto market had also reacted positively back then when both parties first announced that they had reached an agreement.

Advertisement

✓ Share: