Trump Criticizes Fed Chair Powell Amid Stock Surge on US-UK Trade Deal; Bitcoin Hits $100,000 on Trade Optimism

On May 8, former President Donald Trump criticized Federal Reserve Chair Jerome Powell for maintaining interest rates at 4.25% to 4.50%, calling him a 'fool' amid what Trump described as favorable economic conditions. This criticism followed the announcement of a new U.S.-U.K. trade agreement, which boosted U.S. equity markets. Bitcoin also surged past $100,000, driven by trade optimism and stable monetary policy expectations. The Federal Reserve's decision to hold rates steady was influenced by ongoing tariff uncertainties, with future rate cuts potentially on the horizon.

Trump Slams Powell Over Rate Decision

On May 8, Donald Trump took to his Truth Social platform to denounce Federal Reserve Chair Jerome Powell, labeling him “Too Late Jerome” and a “FOOL” for maintaining the federal funds rate at 4.25% to 4.50%. Trump argued that inflation was under control and that the Fed should have acted sooner to lower borrowing costs. “Oil and Energy way down, almost all costs (groceries and ‘eggs’) down, virtually NO INFLATION, Tariff Money Pouring Into the U.S. – THE EXACT OPPOSITE OF ‘TOO LATE!’” Trump wrote.

This latest outburst follows a series of similar criticisms from Trump, who has repeatedly pressured the Fed to cut rates more aggressively. Despite his rhetoric, Powell has maintained that the central bank must remain independent and data-driven. In a May 7 press conference, Powell stated that the Fed is “in no hurry” to cut rates and emphasized a “wait and see” approach as it monitors the economic impact of Trump’s tariff policies.

Powell reiterated that while inflation is gradually easing, it remains above the Fed’s 2% target. “If the large increases in tariffs that have been announced are sustained, they’re likely to generate a rise in inflation, a slowdown in economic growth and an increase in unemployment,” Powell said.

Markets Rally on US-UK Trade Deal

Despite the political friction, U.S. equity markets posted gains on Thursday following the announcement of a new trade agreement between the United States and the United Kingdom. President Trump unveiled the deal from the Oval Office, describing it as a “very large deal” that would open “billions of dollars of increased market access for American exports, especially in agriculture.”

The agreement includes expanded access for U.S. beef, ethanol, and other agricultural products, as well as provisions involving steel, aluminum, and aerospace sectors. Secretary of Commerce Howard Lutnick confirmed that the U.K. would purchase $10 billion worth of Boeing aircraft, sending Boeing shares up 2%.

The Dow Jones Industrial Average rose 254 points, or 0.6%, to close at 41,368. The S&P 500 gained 0.6% to finish at 5,664, while the Nasdaq Composite climbed 1.1%. Trump encouraged investors to act on the momentum, stating, “You better go out and buy stock now. This country will be like a rocket ship that goes straight up.”

Bitcoin Breaks $100,000 Barrier

In the cryptocurrency market, Bitcoin surged past the $100,000 threshold for the first time since February, driven by renewed trade optimism and the Fed’s decision to hold rates steady. According to CoinMarketCap, Bitcoin was trading at $101,316.38 as of Thursday afternoon, marking a 5.52% daily increase.

Analysts attributed the rally to a combination of macroeconomic factors, including expectations of stable interest rates and increased institutional investment. Standard Chartered’s Geoff Kendrick projected that Bitcoin could reach $120,000 by the end of Q2, citing ETF inflows and growing interest from sovereign wealth funds and pension institutions.

“Bitcoin tapped the $100,000 territory as the U.S. gears up for trade talks with China and prepares to unveil a deal with the UK,” Kendrick noted. Institutional inflows totaled $142 million on Wednesday, with major players like the Swiss National Bank and Abu Dhabi’s sovereign wealth fund reportedly increasing their exposure.

Fed Holds Steady Amid Tariff Uncertainty

The Federal Reserve’s decision to maintain its benchmark interest rate came amid ongoing uncertainty surrounding the economic impact of Trump’s tariff policies. Since April 2, dubbed “Liberation Day” by the Trump administration, the U.S. has imposed a 10% tariff on most countries, with higher rates on key trading partners including China, Canada, and Mexico.

Powell emphasized that the Fed’s current stance allows it to monitor the evolving trade landscape without prematurely stimulating inflation. “We believe the Fed will opt to be patient, even if it risks falling behind the curve,” wrote Ryan Sweet, chief U.S. economist at Oxford Economics.

Upcoming Fed meetings are scheduled for June 17–18 and July 29–30, with futures markets pricing in a potential rate cut as early as July. However, some analysts, including those at JPMorgan and Capital Economics, believe the Fed may wait until later in the year or even until a new Fed chair is appointed.

Broader Market Sentiment and Asset Movements

The broader market reaction to the trade developments and Fed policy was largely positive. Treasury yields rose, reflecting investor confidence that the U.S. economy may not require aggressive monetary easing. Gold prices dipped, while crude oil and Bitcoin prices climbed, signaling a shift toward riskier assets.

Despite the upbeat sentiment, some analysts cautioned that volatility could persist. Solita Marcelli, Chief Investment Officer Americas at UBS Global Wealth Management, noted that while the U.S.-U.K. deal is a positive step, “bigger trading partners could offer bigger hurdles,” particularly China.

Trade talks between the U.S. and China are scheduled to resume this weekend, with Treasury Secretary Scott Bessent leading the American delegation. China has called on the U.S. to cancel its tariffs ahead of the negotiations.

References

• Trump calls Fed Chair Jerome Powell a "fool" for keeping interest rates steady
• Stocks close higher after U.S. and U.K. announce trade deal
• Bitcoin Price Hits $100,000 for First Time Since February - Decrypt
• Binance's CZ Shares Bitcoin Golden Rule as BTC Price Surpasses $100K Again
• Powell says Fed can wait to lower interest rates again. But will it wait too long?
• Trump is bashing Jerome Powell again after the Fed keeps interest rates steady
• Bank Of England Raises Prospect Of Cheaper Mortgages With Interest Rate Cut To 4.25%