by Coinstrooper Crypto Articles
Quick Take
  • However, the policy signals buried in the exchange matter far more for Bitcoin (BTC), oil, and equities.
  • In the interview, Welker pressed Trump on whether the Federal Reserve may need to raise rates under new Chair Kevin Warsh.
  • The Senate confirmed Warsh on May 13 by 54 votes to 45, the narrowest margin for any Fed chair.
  • He chairs his first policy meeting on June 16 and 17, with rates at 3.50% to 3.75%.

What Happened

President Donald Trump endorsed lower interest rates and declared that growth does not cause inflation before walking out of a Meet the Press interview with NBC’s Kristen Welker.

The Walkout Buried a Clear Message on Rates

Trump pushed the opposite way.

Market Context

Trump drew a conclusion that rejects decades of Phillips curve thinking, which links hot labor markets to rising prices.

Markets are not listening yet. CME FedWatch prices a 96% chance of a hold this month.

Oil Prices Hinge on the Iran Endgame

That is the inflation pressure Warsh inherits. Asked whether gas prices have peaked, Trump refused to commit.

Either path ends the same way, he argued, with gasoline prices set to “drop like a rock.”

Bigger Budgets, Bigger Liquidity

Why It Matters

The walkout clip now dominates social feeds. However, the policy signals buried in the exchange matter far more for Bitcoin (BTC), oil, and equities.

In the interview, Welker pressed Trump on whether the Federal Reserve may need to raise rates under new Chair Kevin Warsh.

The Senate confirmed Warsh on May 13 by 54 votes to 45, the narrowest margin for any Fed chair. He chairs his first policy meeting on June 16 and 17, with rates at 3.50% to 3.75%.

Fresh data gives the President his talking point. May payrolls rose by 172,000, roughly double the 85,000 consensus, while unemployment held at 4.3%.

“It depends. It depends where the war goes. It could be after I give them a shot, and it could be if we sign an agreement it will go down now otherwise it will go down after we finish.”

Trump also signaled more military spending on top of a record base.

Details

“There’s no reason to raise interest rates. The country becomes great. We built the country by doing great and having rates low.”

“Growth is the greatest thing you can have and growth does not cause inflation.”

The stance revives a first-term pattern. Trump publicly hammered then Chair Jerome Powell through 2018 and 2019 to force cuts.

This time the pressure lands on an awkward target. Warsh built his reputation as a hawk and quit the Fed board in 2011 after opposing quantitative easing.

“I think Kevin is fantastic, and I want to do whatever he wants and I don’t want to have a big influence on him…”

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The war has rewritten energy math since late February. Brent crude jumped from about $72 per barrel to nearly $120 before easing to about $94 on Friday.

AAA puts the national gas average at $4.17 per gallon, up $1.16 since the Iran war began.

A deal would also reopen the Strait of Hormuz, the corridor carrying roughly 20% of global oil supply.