Donald Trump has revived the rate-cut debate with a direct message to the Federal Reserve. In a Fox News appearance on January 13, 2026, he said he wants a Fed chair “who can lower rates,” arguing that when markets are rising, the central bank should not slow them down. The remarks have sharpened attention on the next FOMC meeting set for January 27-28.
Growth stays solid, but inflation has not reached target
The U.S. economy entered 2026 in relatively stable shape, though the picture is uneven. The source says Q3 2025 GDP grew 4.3%, while most forecasts for 2026 point to about 2% growth, with more optimistic views closer to 3%. Unemployment stands at 4.4%, still low, yet job creation has slowed sharply. Inflation is running at 2.5% to 2.7%, below prior peaks but still above the Fed’s 2% objective.
Cost pressures have not disappeared. Average tariffs of about 17% and lower immigration are adding strain to prices and labor supply. At the same time, fiscal support from the One Big Beautiful Bill Act, including tax rebates and business incentives, is still backing consumer spending, AI investment, and infrastructure activity. In that setting, the usual central-bank response would be caution rather than rapid easing. Trump is pushing the opposite case.
January meeting and Fed leadership are both in focus
The federal funds rate is currently at 3.50% to 3.75%, unchanged since the cut delivered in December 2025. The next policy meeting is scheduled for January 27 and 28, 2026, and the source says markets expect the Fed to hold rates steady. That leaves investors focused on the tone of the meeting as much as the decision itself.
Leadership questions are adding another layer. According to the source material, Fed Chair Jerome Powell’s term as chair is set to expire in May 2026, while Trump has voiced reservations about his leadership. Talk of a replacement seen as closer to Trump’s policy preferences has become more common. For risk assets, that kind of policy uncertainty can be enough to move prices on its own.
Why crypto is reacting to rate expectations
The source frames Bitcoin (BTC) and Ethereum (ETH) as assets that often move opposite to Fed rate pressure. Higher rates tend to raise borrowing costs and reduce appetite for risk, which can weigh on crypto. Lower rates, or even stronger expectations of future cuts, can improve liquidity conditions and draw capital back into volatile assets. When the market is unsure or forced to delay those expectations, price swings often get larger.
Hopes for rate cuts in 2026 have already supported short-term crypto rallies. The source notes that Bitcoin reached $93,000 to $95,000, though fading confidence in early easing also led to volatility and some profit-taking. With that backdrop, traders are tracking every signal from the Fed, Trump’s public pressure campaign, and the policy message delivered at the late-January FOMC meeting.