According to The Kobeissi Letter, President Trump publicly criticized Federal Reserve Chair Jerome Powell as 'unbelievable' and insisted that the Fed 'must now lower rates' following the release of ADP Employment data showing the weakest job growth in over two years. Despite this political pressure, Powell reiterated he is in 'no hurry' to cut rates. This standoff between fiscal and monetary policy could heighten volatility in cryptocurrency markets as traders often respond to shifts in rate expectations and economic uncertainty, especially when traditional markets show signs of weakness (Source: @KobeissiLetter, June 4, 2025).

According to The Kobeissi Letter, US 10-year Treasury yields have surged by 35 basis points in May 2025, reaching 4.50%. This rise is attributed to recent trade deal announcements and market sentiment that is pricing out future Federal Reserve rate cuts, providing Chair Powell with more justification to maintain current rates. For crypto traders, persistently high yields and deferred rate cuts can mean continued pressure on risk assets, as higher yields make traditional assets more attractive compared to cryptocurrencies. (Source: The Kobeissi Letter, Twitter, May 13, 2025)