Bitcoin (BTC) investors fiercely criticized US President Donald Trump, who called the central bank to tax people’s savings. Trump reiterated his pressure on the Fed in his post on Twitter in the previous days and suggested that he “keep up” with Europe on interest rate cuts.
Wants Negative Interest Rate
The European Union first launched the negative interest rate application in 2014. Trump also said the following about negative interest rates:
“The United States should accept this” gift “as long as other countries benefit from negative interest.”
Negative interests basically mean receiving wages because they keep money from banks (in short, it is possible to save people). Fed President Jerome Powell said he was against negative interest, but a former official last month participated in talks for the first time in history to pull US rates into the negative area. “The US Federal Reserve should tackle this recession, which is deepening deeply by pulling interest rates below zero for the first time,” said former Minneapolis Fed President Narayana Kocherlakota.
Bitcoin users, on the other hand, criticized the issue of taxing accumulating people. According to them, the government is helping out big companies by taking from small players. After Bitcoin experienced its third half-time event, the supply of money has been solid and the inflation rate has dropped to 1.8 percent. Meanwhile, it was a pity for the community that Trump spoke such words. Unsurprisingly, cryptocurrency users didn’t take Trump’s statements very seriously.
“While adopting a Fed-controlled Weimar strategy, Bitcoin completed its third half,” said Tyler Winklevoss, co-founder of the Gemini exchange. Even the famous gold investor Peter Schiff, known for his hatred for Bitcoin, did not care about this call. Schiff said:
“Negative interests are not a gift. It is a flow of money transfer from accumulators to debtors ”.
JP Morgan finds it useful
On the other hand, JP Morgan strategists did a research on Trump’s proposal. Evaluating the probability of the Fed’s negative interest rate application, strategists said that the application of a limited level of negative interest rate would be beneficial for the economy.