The Sunday began with an interesting note, with the US dollar crashing three-year lows next to the losses on Wall Street, but Bitcoin, which usually follows the emotion on Wall Street, stands tall.
This can be the beginning.
Moving away from the USD and heading to seizures and censorship-resistant properties such as BTC and Stablecoins can accelerate if President Donald Trump follows his reported plans to burn federal reserve chairman Jerome Powell, who has pushed the DXY and US stock market less today.
That was the lesson from Turkey, who saw its money, the lira (try), which fell in recent years because of President Recep Tayyip Erdogan’s repeated intervention in the Central Bank operation. Sliding ly Flying onto BTC and Stablecoins from at least 2020-21.
Trump’s issues with Fed
Trump has quarreled with the public with the Federal Reserve and its chairman Jerome Powell, for years, criticizing Powell for being late at rates even in his first term when interest rates are lower than today.
However, Trump’s criticism has recently reached a fever fever with reports suggesting that he is looking for ways to get rid of Powell, who has recently warned the uprising even when the president is re -writing calls for lower borrowing costs while suggesting that there is no inflation.
Powell’s patient approach follows a spike led by the trade war with proposals based on the survey of the Inflation Expectationsthat can always be self -fulfilled.
However, on Monday, Trump still went, Calling Powell is a “main loser” and warning that the economy may slow down unless interest rates are immediately lowered.
Turkey
Erdogan began to interfere with Central Bank operations in 2019, and since then, Lira has collapsed seven times from 5.3 per dollar to 38 per dollar.
It all started at Turkey’s inflation rate reaching a double number in 2017. It remained elevated in the next year, motivating the country’s central bank Increase a weekly repo rate from 17.5% to 24% in September 2018.
The move was unlikely to go properly to Erodgan, who issued the first commandment of the Central Bank of Turkey (CBT) Murat Cetinkaya in July 2019. From then until the end of 2021, Erdogan issued several commands that had removed and hired several CBT officials. In the middle of all this, inflation remained elevated, and the Lira continues to decrease at a stressful rate.
“We certainly do not believe in high interest rates. We will pull inflation and exchange rates with low-rate policy … High rates make it richer, the poor poor. We will not let that happen,” Erdogan said in 2021.
Until 2025, Turkey faced an inflation rate of almost 40%, according to data source tradingeconomics.
This episode serves as a cautionary tale for Trump, who has been featured in the installation of central bank’s freedom – especially in the face of floating inflation – can erase investor confidence and send domestic currency to a tailspin.
This does not mean that the USD will crash exactly like LIRA but may see significant lowering.
Perhaps it can prove even more dependent for the global market, considering the dollar is a global currency reserve, and the US Treasury market is the bedrock for international finances.
If the better meaning does not prevail, US investors may feel indescribable departure from US properties and the BTC and other alternative investments, as did the Turks.
