Trump demands immediate interest rate cut from incoming Fed chair; pressure builds at December 10th meeting
The market expects the Fed to cut interest rates by 25 basis points, with CME FedWatch showing odds of 90%.
Meanwhile, Bitcoin is trading around $90,551, down 23% from its all-time high of $126,000, as investors wait for the Fed’s signal.
US President Donald Trump has again put pressure on the Federal Reserve. He simply said that an immediate rate cut is a requirement for the next Federal Reserve chairman.
With the next Federal Reserve meeting just one day away, the timing of President Trump’s ultimatum adds further heat to an already tense economic situation. How will the cryptocurrency market react to this?
President Trump demands interest rate cut from next Fed chair
President Trump wants the next Federal Reserve leader to guarantee lower interest rates as a core condition of taking office, according to a report from Solid Intel. President Trump has always said that high interest rates slow the economy, but this time he has set tough conditions.
Calling a rate cut a “non-negotiable” condition means there is no commitment or appointment for a rate cut.
This request causes great concern. The Federal Reserve is supposed to function independently and be free from political pressure.
BREAKING: 🇺🇸According to Reuters, President Trump just said, “Immediate interest rate cuts are a condition for the next Fed chairman.” pic.twitter.com/qotTfadGYA
— Ash Crypto (@AshCrypto) December 9, 2025
If the chairman is forced to cut rates, it could erode market confidence, increase volatility and reduce confidence in the dollar.
Focus on the December 10th Fed meeting
Meanwhile, all eyes are on the Federal Open Market Committee, which is already scheduled for December 10th. Market indicators such as CME Fedwatch show the probability of a 25bps rate cut is close to 90%, supported by cooling inflation (core PCE of 2.7%) and unemployment rate of 4.4%.
Interestingly, betting platforms such as Polymarket and Kalshi are showing odds of 94-95%, which is in line with the predictions of JP Morgan, Standard Chartered and Nomura.
Just in: Chance of Fed cutting rates this week jumps to 94%, according to Polymarket 🇺🇸
Bullish 🚀 pic.twitter.com/KNaFQHvePz
— Bitcoin Magazine (@BitcoinMagazine) December 8, 2025
Impact on Bitcoin and virtual currencies
Lower interest rates often support risky assets like cryptocurrencies. The last rate cut in October 2025 helped ease market pressure, but Bitcoin, which hit a high of $126,000 in October, is now down nearly 23% to around $90,251.
If the Fed signals further interest rate cuts, depending on Chairman Powell’s tone, risk assets such as Bitcoin could respond strongly with either bailout or increased volatility.
