President Trump’s recent remarks on the Federal Reserve and Senator Mike Lee’s proposal to abolish the central bank suggest a potential change in monetary policy that could have a major impact on Bitcoin’s role in the financial system.
On March 20, 2025, President Trump urged the Fed to cut interest rates, responding to his previous decision to maintain stable interest rates amid escalating tariffs. It’s rare for the president to publicly criticize the Fed, but Trump’s direct approach coincides with his previous comments, such as calling Fed Chairman Jerome Powell and his team, “Bornhead,” during his first term.
These ongoing criticism raises questions about the Fed’s future independence, as it is traditionally protected from political pressure to prevent the inflation boom bust cycle.
However, current administrations are attempting to consolidate the power of all government agencies through executive orders that advocate “overseeing and managing the president” rather than independent agencies, and could challenge long-standing firewalls between political interests and financial policies. Decided.
Trump on March 21st strengthened the call for rate cuts, claiming that prices for essential products such as eggs, groceries and gasoline have reduced, creating an opportunity for central banks to implement cuts.
He writes about the true social: This pressure comes as the administration plans to introduce new mutual tariffs on April 2nd. Called “The Day of America’s Liberation.”.
Professor Vasso Ioannidou of Bayes Business School warned that political interference could erode market trust, potentially increasing volatility and undermine economic stability. However, Nasdaq is currently up 0.53% on Permarket ahead of the new week’s trading, so it appears that the US market is being supported by something.
Senators abolish the Fed
Meanwhile, Senator Mike Lee’s legislative push adds another layer to the debate. Lee defended the entire elimination of the Federal Reserve, claiming that the Fed has become a “economic manipulator.”
Lee, along with Representative Thomas Massey, introduced the Federal Reserve Act. The bill faces important challenges, but its introduction highlights the growing political willingness to rethink the structure of US financial governance.
These moves align with the administration’s new digital assets strategy. Trump’s executive order establishing a strategic Bitcoin reserve will promote Bitcoin to a strategic domestic asset comparable to gold.
The administration plans to build this preparation through the confiscation of criminal assets and pledge to permanently retain its holdings, thereby reducing significant market sales pressure. Additional purchases may be made through a fiscal deficit strategy. This includes using money or revenue from the Gold Card Visa Program.
Boheins, who leads the Presidential Working Group on digital assets, has revealed plans since 1971 to significantly expand the Bitcoin Reserve using a cost-neutral approach potentially funded by reviving gold certificates.
Presidential intervention in the Fed
Historically, the president’s involvement in monetary policy has not been unprecedented. Nixon’s pressure on Federal Reservans in 1972 led to policies that contributed to severe inflation throughout the 1970s. Similarly, the impact that President Johnson had on Fed Chairman William Martin highlighted how the political agenda historically influenced monetary policy on economic damage.
Trump’s defense of lower interest rates and increased financial surveillance coincides with his administration’s Bitcoin embrace. This dual focus on reshaping monetary policy and promoting Bitcoin suggests a coordinated approach to rearranging the US financial strategy.
With Lee’s efforts to eliminate Fed progress, Bitcoin could increasingly function as a decentralized financial alternative that resonates, particularly in an era of economic uncertainty and political interference.
Bitcoin’s inherent resistance to decentralization and centralized control uniquely placed it as a offset to politically influenced monetary policy.
The convergence of Trump’s financial critique and strategic Bitcoin initiatives could represent more than a political stance, and could mark a major change in integrating Bitcoin into a broader economic framework.
This dual strategy could restructure market perceptions, drive institutional adoption and solidify the role of Bitcoin from speculative assets to fundamental elements of US financial reserves and monetary policy.
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