Seeds of Wisdom RV and Economic Updates Wednesday Morning 4-23-25

23/04/2025

Good Morning,

TRUMP WARNS: “PERFECT TIME” FOR FED RATE CUTS — WILL JEROME POWELL LISTEN?

▪️Trump clarified he won’t fire Powell but strongly urges the Fed to cut rates, citing global easing.

▪️Markets reacted with cautious optimism, as trade tension easing and Trump’s comments influenced Bitcoin and treasury yields.

▪️The Fed remains cautious, balancing inflation with potential tariff impacts, despite Trump’s pressure for rate cuts.

The debate over Federal Reserve rate cuts is heating up again. President Donald Trump says he’s not firing Fed Chair Jerome Powell — but he’s clearly running out of patience. In classic Trump style, the message is direct, the pressure is rising, and the markets are watching closely.

Here’s what’s unfolding behind the scenes.

“Perfect Time” for Action, Says Trump

Speaking to reporters, Trump called it the “perfect time” for the Fed to lower interest rates. He dismissed growing speculation about Powell’s removal but didn’t hold back on criticism of the Fed’s slow pace.

“I’m not firing Powell,” Trump said, blaming the media for the rumors. But he added that Powell should be moving faster, especially as other global central banks are already easing their policies.

“He should act early or on time, not late,” Trump said, signaling that the Fed’s current approach could soon fall behind the curve.

Bitcoin Breaks $90K as Market Reacts

Despite Trump’s strong remarks, broader markets stayed steady. But Bitcoin surged past the $90,000 mark, boosted by optimism from both Trump’s comments and new statements from the U.S. Treasury Secretary, who called the trade war with China “unsustainable.”

Short-term Treasury yields edged up to 3.82% after a weak government bond auction, while the U.S. dollar held its ground. Investors appeared cautiously optimistic about easing trade tensions.

Analysts: Trump Is Managing Expectations

Analysts say Trump’s push for rate cuts might be more about shaping public expectations than actually threatening Powell’s role. While Trump says Powell is safe, his public pressure could serve to redirect blame if economic growth slows.

This isn’t the first time Trump has publicly criticized the Fed — and likely won’t be the last.

Fed Holds Course as Inflation Stays High

For now, the Federal Reserve is staying the course. Powell’s position appears secure, and Fed officials are focused on evaluating the long-term effects of Trump’s trade, tax, and immigration policies.

With inflation still running above the 2% target for the fourth year in a row, most Fed members believe current interest rates are appropriate.

Growth Risks Could Force a Rethink

Still, some economists warn that the ripple effects of Trump’s tariffs could slow growth later this year. If that happens, the Fed may have no choice but to revisit its stance.

Rate cuts may not be off the table — even if Powell continues to resist political pressure.

With Wall Street rebounding and Trump increasing his calls for action, one thing is clear: the Trump vs. Powell rate debate isn’t going away anytime soon.

For now, Powell keeps his seat and his stance — but the clock is ticking, and everyone knows it.

@ Newshounds News™
Source: Coinpedia

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XRP IS THE COIN WITH ‘THE MOST UTILITY,’ SAYS TEUCRIUM CEO

In an interview on Bloomberg Crypto with anchors Tim Stenovec and Katie Greifeld, Teucrium Trading’s chief executive officer (CEO) Sal Gilbertie argued that XRP is the crypto asset with “the most utility” in the entire space.

“Ripple’s a company of really professional people working really hard on this. That’s why we chose XRP. We believe in XRP. We’re not making a price prediction, but we do believe it’s a coin that will have the most utility out there. You know Bitcoin is a store of value […] but I think that XRP has a true use case,” Gilbertie remarked.

He further highlighted the professionality of the Ripple team which is a big reason the company believes in the crypto asset: “There’s just no doubt about it in the Ripple team from what the interaction we’ve had with them […] They act like investment bankers over there. They know what they’re doing and they will make this work.”

Teucrium’s 2x Long XRP ETF

Teucrium launched the first XRP-based exchange-traded fund (ETF) in the United States on April 8. The Teucrium 2x Long Daily XRP ETF, traded under the ticker XXRP on NYSE Arca, is a 2x leveraged fund aiming to provide twice the daily return of the token.

The ETF’s launch coincided with a sharp rebound in the underlying token. While Teucrium cannot see its shareholder register in real time, Gilbertie believes early flows reflect “a mix of professionals and retail trading their own accounts.” XXRP is engineered explicitly for intraday traders, he emphasized:

“This specific product is geared toward traders who have a short-term view—primarily a one-day view—of what XRP’s price moves might be. This allows them in a traditional brokerage account to achieve leverage without a margin account.”

Gilbertie acknowledged that such magnified exposure is unsuitable for naïve investors. “Of course it’s risky. Leveraged funds are always risky and people need to be very careful,” he cautioned, adding: “I hope that the non-sophisticated traders do their homework first before they set foot in this.”

The conversation also illuminated a shifting regulatory atmosphere in Washington. Gilbertie contrasted the Securities and Exchange Commission’s current leadership with its prior stance under former Chair Gary Gensler, without naming him directly but characterizing the previous regime as “a blocker” to digital-asset innovation.

“The old SEC regime was a blocker…worked against the crypto industry,” he said. By contrast, the gap between administrations—during which newly confirmed Chair Paul Atkins and the fresh slate of commissioners were still settling in—created a moment when Teucrium’s application could proceed.

“We applied as soon as we could, meaning the old regime had left and wouldn’t block us, and we simply listed as soon as we could following the normal rules. The staff is really wonderful at the SEC…It’s the leadership that matters.”

XXRP’s methodology relies on daily rebalancing of swap positions to deliver twice the token’s move—up or down—over a single trading session. Compounding makes the fund unsuitable as a long-term proxy, an intrinsic feature common to all daily leveraged products but one the firm has gone to pains to highlight in its prospectus. Gilbertie underscored that message: “Volatility is the point. You want the action,” but traders must understand that the action cuts both ways.

For now, Gilbertie is betting that the community’s zeal, combined with a friendlier SEC stance, will keep volume humming. “We thought the time was right,” he concluded, “and so far the market seems to agree.”

At press time, XRP traded at $2.24.

@ Newshounds News™
Source: Bitcoinist