Trump Lambasts Fed Chairman Again, While Bitcoin Eyes $110,000

US president Donald Trump has recently taken a jab at Federal Reserve chairman Jerome Powell once again, calling him a “stubborn mule” and “a stupid person,” while talking to journalists. This criticism was directed at Powell for refusing to bring down the current interest rates.

Trump repeated his criticism, saying that the inflation rate in the country has been reduced significantly and gas prices have dropped to around $2, and even down to $1.80 in some states. This was the major argument offered by Trump for the rate cut, which has never happened so far. On top of that, the feud between Elon Musk and Trump has escalated once again, with the tech mogul thinking of creating his own political party that would indeed care about the American people and work in their interests.

Trump bashes Powell, but Fed chairman explains his decision

Still, the Federal Reserve and its chairman Powell are being cautious due to the high trade tariffs imposed by Trump and his administration on Canada, China, the EU, and other countries.

“We’ve got the lowest gas prices in years, inflation is flatlining, but this guy still won’t move,”

Trump told journalists.

The last FOMC meeting, when Powell announced the decision to keep the rates at the current level, took place on June 18. The next one is scheduled for 29-30 July, and markets are keeping their eyes on that date, hoping that perhaps the Fed Reserve would yield and reduce the rates at that time.

In the meantime, the pioneer cryptocurrency, Bitcoin, increased by a whole 4% on Wednesday, spiking from $105,350 and reaching a mark close to the $110,000 level, just one thousand dollars below the recent all-time high.

Powell explained the Fed Reserve’s rate decision, saying that while inflation has indeed been reduced, Trump’s aggressive tariff policies are still threatening the US economy in the long-term perspective. He stated outright that if it had not been for the tariffs, the Fed would consider modest rate adjustments. He stressed that the central bank of the US remains data-oriented and will not yield to pressure from the president or from his administration.

Trump added that if the interest rates had been reduced, this would have saved the US government $600 billion per year. Besides, he said, if something went wrong and inflation rose again, the Fed Reserve could always increase rates anew. “He’s either blind or he’s doing this to sabotage me,” Trump said about Powell.

After the FOMC meeting on June 18, Trump stated that the rates should be at least 2.5 basis points lower than they are now, adding that Europe has already had the tenth rate decrease this year. He called Powell a “real dummy” in a post on his platform, Truth Social.

Still, Bitcoin remained unfazed by the Fed’s decision, crashing only a few days after that when the US attacked Iran’s nuclear plants. After falling below $100,000 on June 22, BTC has by now soared by roughly 10% and is approaching $110,000.

Tensions between Trump and Musk escalate again

Meanwhile, tech billionaire and Trump’s former supporter Elon Musk has resumed his public social media campaign against Trump’s “Big Beautiful Bill” – the new spending package with tax reductions, which would allow moving the national debt ceiling by $5 trillion higher. Musk has once again slammed the bill, predicting an upcoming bankruptcy of the US as a nation and calling on Trump to cancel the implementation of this bill.

In response, Trump first promised to “take a look” into the possibility of deporting Musk from the US. After that, he said that if the Tesla CEO continues to “play this game” with him, he would direct the Department of Government Efficiency (D.O.G.E.), formerly helmed by Musk, at Elon and D.O.G.E. would “eat” Musk, and help the US “save a fortune,” thus reminding the public that Tesla and SpaceX largely live on governmental contracts and federal subsidies.

This escalation took place after Trump passed a law that would raise taxes on wind and solar energy projects in favor of traditional fossil fuels in the US, denting Musk’s solar panel production, made by Tesla. Musk claimed that this law would destroy millions of jobs in these progressive sectors of the US economy.

In return, Musk threatened to create a new “America Party” as he accused both Democrats and Republicans of failing to reduce the national debt; therefore, both are pushing excessive spending, in his opinion. This was when Trump spoke about the possibility of deporting Musk and forcing him “to close the shop” and “go back to South Africa,” totally ignoring the fact that Elon Musk is a US citizen.

While Tesla stock has dropped by around 5-6% amid this spat, Bitcoin is displaying immunity and resilience, which is pleasing the crypto community. BTC has even staged an impressive price rise, targeting the recent all-time high of over $111,000.