<ul data-eligibleForWebStory="true"><li>President Trump and FED Chairman Powell are in conflict over interest rate policy.</li><li>Trump criticizes Powell for keeping rates high to combat inflation, contrary to Trump's goal of boosting economic recovery.</li><li>The FED maintained the interest rate at 4.5% in the latest decision, the fifth consecutive unchanged decision since December 2024.</li><li>Analysts warn of stagflation risk in the U.S. economy, limiting FED's policy options.</li><li>High interest rates pose challenges for altcoins, hindering market growth and liquidity due to quantitative tightening.</li><li>Altcoin bull markets historically thrive in low interest rate environments like in 2017 and 2021.</li><li>FED's balance sheet reduction negatively impacts altcoins, with projected relief not expected until interest rates hit zero possibly in 2028.</li><li>Individual investors are withdrawing from the market, creating hurdles for smaller altcoin projects dependent on retail engagement.</li><li>Global uncertainties like conflicts in the Middle East, oil price hikes, and U.S. political tensions further reduce market confidence in altcoins.</li></ul>

FED’s Tight Policy Threatens Altcoin Season Amidst Political Turmoil

Discover more