According to The Kobeissi Letter, President Trump publicly stated that the consensus among most is for the Federal Reserve to cut interest rates, criticizing Fed Chair Jerome Powell as 'Too Late Powell' (source: @KobeissiLetter, May 17, 2025). This renewed push for rate cuts signals potential increased liquidity in financial markets, which historically correlates with bullish momentum in the cryptocurrency sector, particularly for major assets like Bitcoin and Ethereum. Traders should monitor Fed policy statements closely, as any confirmation of rate cuts could drive significant price action and volatility in crypto markets.

According to The Kobeissi Letter, global central banks have executed 10 rate cuts and 3 hikes in 2025, following a substantial trend of 164 cuts and 32 hikes in 2024. This shift indicates a strategic adjustment compared to the 162 cuts and 6 hikes during the 2020 pandemic. The U.S. has paused rate cuts, while European central banks continue to adjust policies, which could influence trading strategies in forex and bond markets.