Experts cry injustice for Fed's Powell: Bitcoin, US stocks, and gold reach new highs, why lower interest rates when the economy is so good?

US President Trump has publicly called for Federal Reserve Chairman Powell to lower interest rates multiple times this year, even threatening to fire him if he doesn’t cut rates. However, cryptocurrency analyst Benjamin Cowen voiced support for Powell on social media platform X yesterday, emphasizing that Powell successfully reduced the inflation rate from 9% to 2% while maintaining low unemployment rates, yet still faces pressure to resign. (Background: The US June CPI hit a yearly high! Tariff effects emerge, the Federal Reserve's rate cut remains on hold, Bitcoin briefly fell below $116,000) (Additional context: The chance of a rate cut in July approaches zero! US June non-farm employment is exceptionally strong, US stocks rise together, and Bitcoin stands above $110,000) President Trump has publicly criticized Federal Reserve Chairman Powell multiple times this year, arguing that he has not actively lowered interest rates, placing a burden on the US economy. Trump even threatened that if Powell does not cooperate with rate cuts, he would be fired. For instance, in April, he stated that Powell's "suspension" could not be delayed any longer and in June he handwrote a letter demanding the Federal Reserve to significantly lower interest rates, claiming that high rates cost the US hundreds of billions of dollars in interest expenses each year. Trump believes that the current inflation rate is close to the Federal Reserve's 2% target and that with strong economic performance, Powell should immediately cut rates to lower borrowing costs and stimulate the housing market and consumption. Experts voice support for Powell However, renowned cryptocurrency analyst and founder of "Into The Cryptoverse" Benjamin Cowen spoke out for Powell on July 23 on social media platform X, questioning Trump's and the market's obsession with rate cuts. He pointed out that under Powell's leadership, the Federal Reserve successfully reduced the inflation rate from a high of 9% to the current level close to 2%, while keeping the unemployment rate stable at around 4%. The stock market, Bitcoin, and gold prices have all hit historical highs, indicating strong economic performance. Cowen wrote: Imagine Powell's current situation. Reducing the inflation rate from 9% to 2% while keeping unemployment at 4%. The stock market, Bitcoin, and gold all hit historical highs. Yet, people are demanding his resignation. Since the economy is doing so well, why is there a need to cut rates? Additionally, Cowen further questioned the calls for rate cuts from the real estate industry during interactions with netizens. He stated that many real estate professionals believe that cutting rates can invigorate the housing market, but historical experience shows otherwise. For example, after the Federal Reserve cut rates at the end of last year, the yield on 10-year Treasury bonds surged from 3.6% to 4.8%, leading to higher mortgage rates instead of lower ones. Cowen explained that long-term rates only decline during rate cuts when the economy is in distress; if the Federal Reserve proactively cuts rates early, market expectations for inflation might actually drive long-term rates higher. He emphasized that the real estate industry, on one hand, claims the economy is strong while on the other hand calls for rate cuts, which is logically contradictory; "you can't want both ways." A lot of people in real estate keep calling for the Fed to lower rates to revive the real estate market. But the last time the Fed cut rates, the 10 year yield rallied from 3.6% to 4.8% and so mortgage rates went higher. The long end only goes down during rate cuts if the… pic.twitter.com/Io8CJnqatU — Benjamin Cowen (@intocryptoverse) July 22, 2025 Regarding the views raised by Benjamin Cowen, netizens have been debating fiercely. Supporters argue that the current economic situation might not be too bad precisely because the Federal Reserve keeps interest rates at a high level; others suggest that Trump’s repeated emphasis on rate cuts is due to the government's excessive deficit rather than a need for economic stimulus, and one should not blindly criticize Powell's decisions. However, some have opposed, claiming that the reduction in inflation, the maintenance of low unemployment rates, and the rise of stocks and gold should perhaps be attributed to Trump, questioning why the credit should go to Powell. Market expects a possible rate cut as soon as September According to CME's FedWatch tool, the market currently expects a 95.3% probability that the Federal Reserve will keep interest rates unchanged (4.25% to 4.5%) at the FOMC meeting at the end of this month (July 30), almost confirming that rates will remain unchanged this month. However, the market has higher expectations for a rate cut in September, believing there is about a 60% chance of a 25 basis point cut. Related reports: US April CPI hits a four-year low》Fed rate cut chances rise, Bitcoin approaches $105,000, US stocks rise Trump tariffs may delay Fed rate cuts! Federal Reserve officials: If inflation improves, interest rates will drop significantly in the next 12-18 months Breaking news》Bitcoin breaks through the $100,000 mark! Trump scolds Fed Chair "No rate cut"〈Experts voice concerns for Fed Powell: Bitcoin, US stocks, and gold hit new highs; why should rates be cut with such a strong economy?〉This article was first published on BlockTempo, the most influential Blockchain news media.