A massive 12-foot golden statue of US President Donald Trump clutching a Bitcoin has been erected outside the Capitol, sparking both attention and debate. Trump's statue unveiling coincided with the announcement of the Federal Reserve a 25-basis-point interest rate cut.<h3>Who is behind the Donald Trump Bitcoin statue?</h3>Local ABC affiliate WJLA reported that the installation was funded by cryptocurrency investors. "Organisers said the piece is intended to provoke debate about the future of digital currency, monetary policy, and the federal government’s role in financial markets," as per the reports.&nbsp;The group behind the project described the statue as a tribute to Trump’s vocal support for cryptocurrencies. Several images and videos of the statue quickly circulated on social media, with many praising it as a symbol of the former president’s pro-crypto stance.&nbsp;Hichem Zaghdoudi, a representative of the group, stated, “This installation is designed to ignite conversation about the future of government-issued currency and is a symbol of the intersection between modern politics and financial innovation.” “As the Federal Reserve shapes economic policy, we hope this statue prompts reflection on cryptocurrency’s growing influence.”&nbsp;The development unfolded in line with the Federal Reserve announcement of its significant interest rate cut by a quarter-point, marking the first time cut since December 2024. This rate cut will curtail the short-term rate to up to 4.1 per cent from 4.3 per cent. Additionally, the central bank has announced two more rate cuts by this year, but just once in 2026, which may disappoint Wall Street.&nbsp;The relationship of President Donald Trump with the chief of the US central bank is marked by relentless attacks. However, everyone's focus is on Trump's response to the key interest rate cut decision by Fed officials, led by Jerome Powell.&nbsp;Also read: <a href="https://www.wionews.com/world/donald-trump-lists-india-pakistan-among-23-major-drug-producing-nations-1758170123057">Is India fueling 'global drug' trade? Trump lists India, Pakistan among 23 ‘major drug-producing' nations</a>&nbsp;

The group behind the project described the statue as a tribute to Trump’s vocal support for cryptocurrencies. Several images and videos of the statue quickly circulated on social media, with many praising it as a symbol of the former president’s pro-crypto stance.

A massive 12-foot golden statue of US President Donald Trump clutching a Bitcoin has been erected outside the Capitol, sparking both attention and debate. Trump's statue unveiling coincided with the announcement of the Federal Reserve a 25-basis-point interest rate cut. Who is behind the Donald Trump Bitcoin statue? Local ABC affiliate WJLA reported that the installation was funded by cryptocurrency investors. "Organisers said the piece is intended to provoke debate about the future of digital currency, monetary policy, and the federal government’s role in financial markets," as per the reports. The group behind the project described the statue as a tribute to Trump’s vocal support for cryptocurrencies. Several images and videos of the statue quickly circulated on social media, with many praising it as a symbol of the former president’s pro-crypto stance. Hichem Zaghdoudi, a representative of the group, stated, “This installation is designed to ignite conversation about the future of government-issued currency and is a symbol of the intersection between modern politics and financial innovation.” “As the Federal Reserve shapes economic policy, we hope this statue prompts reflection on cryptocurrency’s growing influence.” The development unfolded in line with the Federal Reserve announcement of its significant interest rate cut by a quarter-point, marking the first time cut since December 2024. This rate cut will curtail the short-term rate to up to 4.1 per cent from 4.3 per cent. Additionally, the central bank has announced two more rate cuts by this year, but just once in 2026, which may disappoint Wall Street. The relationship of President Donald Trump with the chief of the US central bank is marked by relentless attacks. However, everyone's focus is on Trump's response to the key interest rate cut decision by Fed officials, led by Jerome Powell. Also read: Is India fueling 'global drug' trade? Trump lists India, Pakistan among 23 ‘major drug-producing' nations

The group behind the project described the statue as a tribute to Trump’s vocal support for cryptocurrencies. Several images and videos of the statue quickly circulated on social media, with many praising it as a symbol of the former president’s pro-crypto stance.

12-foot golden Donald Trump Bitcoin statue unveiled outside US capitol: Who’s behind it?

On Monday, Gold prices held ground as investors weighed dovish signals from the US Federal Reserve and the looming August 1 trade deadline set by President Donald Trump. The precious metal hovered near the $3,350 per ounce mark, amid markets jittery over tariff escalation and interest rate moves,&nbsp;As per Reuters, spot gold was flat at $3,352.19 per ounce at 0250 GMT, while US gold futures held at $3,358.70. Traders are awaiting the Fed’s policy meeting next week as fresh rate cut cues may emerge, particularly as inflation remains uncertain under the current US trade strategy. “The dollar has made a subdued start to the week, which has left the door open for gold to post gains early doors with tariff deadlines looming large,” said Tim Waterer, Chief Market Analyst at KCM Trade, to Reuters. Waterer added that if no new deals emerge before the August 1 deadline, gold could aim for a renewed rally towards $3,400 or beyond.<h2>Trump’s tariff and Powell succession in focus</h2>The gold market has also been driven by diverging views within the Fed. Governor Christopher Waller last week backed a rate cut, echoing a dovish stance, as per Bloomberg. His colleague Michelle Bowman is also open to a reduction, though some policymakers reportedly remain cautious, fearing that Trump’s tariffs could trigger persistent inflation.&nbsp;The Fed’s internal split coincides with growing pressure from President Trump. As the US President is reportedly weighing candidates to replace Fed Chair Jerome Powell when his term ends in May. As per Bloomberg, the White House has dismissed a Wall Street Journal report suggesting Treasury Secretary Scott Bessent warned Trump of adverse market reactions if Powell was removed.&nbsp;Gold tends to benefit from lower interest rates, as it does not yield interest and becomes more attractive relative to bonds in a low-rate environment.<h2>Trade talks and geopolitical tensions add to uncertainty</h2>On the trade front, investors are keeping an eye on the negotiations between the US and the European Union closely. US Commerce Secretary Howard Lutnick has remained optimistic about a deal with Brussels. Meanwhile, Reuters reported that Trump may visit China ahead of the Asia-Pacific Economic Cooperation (APEC) summit later this year, or meet Xi Jinping on its sidelines.&nbsp;In Asia, geopolitical jitters have risen after Japan’s ruling coalition lost control of the upper house in Sunday’s election, weakening Prime Minister Shigeru Ishiba’s domestic standing ahead of Trump’s trade ultimatum.<h2>Precious metals remain range-bound</h2>According to Reuters, gold has gained over 25 per cent this year, bolstered by central bank dovishness, US trade tensions, and safe-haven demand. Yet, price action remains within a narrow band as traders wait for clarity.&nbsp;As of 0854 AM in Singapore, Bloomberg reported that spot gold was up slightly at $3,353.80 per ounce, while the Bloomberg Dollar Spot Index fell 0.1 per cent.&nbsp;Silver inched up 0.1% to $38.22, platinum rose 0.3% to $1,425.11, and palladium gained 0.2% to $1,243.47, as per Reuters. (With inputs from the agencies)

Analysts note that dovish Fed signals may support gold, amid tariff concerns. Various Fed members are split on rate cuts, and geopolitical tensions persist, particularly following Japan recent election. Gold has gained over 25% this year but remains within a narrow price range.

On Monday, Gold prices held ground as investors weighed dovish signals from the US Federal Reserve and the looming August 1 trade deadline set by President Donald Trump. The precious metal hovered near the $3,350 per ounce mark, amid markets jittery over tariff escalation and interest rate moves, As per Reuters, spot gold was flat at $3,352.19 per ounce at 0250 GMT, while US gold futures held at $3,358.70. Traders are awaiting the Fed’s policy meeting next week as fresh rate cut cues may emerge, particularly as inflation remains uncertain under the current US trade strategy. “The dollar has made a subdued start to the week, which has left the door open for gold to post gains early doors with tariff deadlines looming large,” said Tim Waterer, Chief Market Analyst at KCM Trade, to Reuters. Waterer added that if no new deals emerge before the August 1 deadline, gold could aim for a renewed rally towards $3,400 or beyond. Trump’s tariff and Powell succession in focus The gold market has also been driven by diverging views within the Fed. Governor Christopher Waller last week backed a rate cut, echoing a dovish stance, as per Bloomberg. His colleague Michelle Bowman is also open to a reduction, though some policymakers reportedly remain cautious, fearing that Trump’s tariffs could trigger persistent inflation. The Fed’s internal split coincides with growing pressure from President Trump. As the US President is reportedly weighing candidates to replace Fed Chair Jerome Powell when his term ends in May. As per Bloomberg, the White House has dismissed a Wall Street Journal report suggesting Treasury Secretary Scott Bessent warned Trump of adverse market reactions if Powell was removed. Gold tends to benefit from lower interest rates, as it does not yield interest and becomes more attractive relative to bonds in a low-rate environment. Trade talks and geopolitical tensions add to uncertainty On the trade front, investors are keeping an eye on the negotiations between the US and the European Union closely. US Commerce Secretary Howard Lutnick has remained optimistic about a deal with Brussels. Meanwhile, Reuters reported that Trump may visit China ahead of the Asia-Pacific Economic Cooperation (APEC) summit later this year, or meet Xi Jinping on its sidelines. In Asia, geopolitical jitters have risen after Japan’s ruling coalition lost control of the upper house in Sunday’s election, weakening Prime Minister Shigeru Ishiba’s domestic standing ahead of Trump’s trade ultimatum. Precious metals remain range-bound According to Reuters, gold has gained over 25 per cent this year, bolstered by central bank dovishness, US trade tensions, and safe-haven demand. Yet, price action remains within a narrow band as traders wait for clarity. As of 0854 AM in Singapore, Bloomberg reported that spot gold was up slightly at $3,353.80 per ounce, while the Bloomberg Dollar Spot Index fell 0.1 per cent. Silver inched up 0.1% to $38.22, platinum rose 0.3% to $1,425.11, and palladium gained 0.2% to $1,243.47, as per Reuters. (With inputs from the agencies)

Gold steadies near $3,350 as markets eye Federal Reserve rate cuts and President Trump’s tariff August deadline.

Gold prices remain steady as markets await Fed, US trade moves

US President Donald Trump has renewed pressure on the Federal Reserve, insisting the central bank should slash its benchmark interest rate to 1 per cent. He argues such a move would cut government borrowing costs and help finance the ballooning deficits driven by his administration’s spending and tax cuts.&nbsp;But economists warn this demand could spell serious trouble for the world’s largest economy. According to Reuters, Trump’s push for ultra-low rates risks undermining the Fed’s credibility, reigniting inflation and rattling investors in the $36 trillion US Treasury market, a critical source of funding for the federal government.<h2>Crisis-era rates, but no crisis</h2>Historically, a 1 per cent Fed policy rate has been associated with moments of genuine economic distress: the dot-com crash, the aftermath of 9/11, the 2008 global financial crisis, and the COVID-19 pandemic. None of those conditions describe the current US economy.&nbsp;Unemployment is relatively low at 4.1 per cent, GDP growth is around 2 per cent, and inflation sits just above the Fed’s 2 per cent target. Gregory Daco, chief economist at EY-Parthenon, told Reuters that, “There is scope to ease from the current 4.25%-4.50% range, but nothing like the magnitude of cuts Trump envisions.”&nbsp;Daco noted that slashing rates to 1 per cent could alarm markets, signalling that the Fed had bowed to political pressure rather than responding to data, risking a loss of confidence and a spike in inflation expectations.The Fed’s mandate: not cheap borrowingThe Federal Reserve’s job is to maintain price stability and full employment, not to make it easier for the government to borrow. Cutting rates sharply when the economy isn’t in recession could spur demand just as new tariffs risk pushing prices higher.&nbsp;&nbsp;Trump’s administration recently passed the “One Big Beautiful Bill Act”, which is expected to widen the budget deficit and increase government borrowing needs. As Reuters notes, larger deficits mean the Treasury will have to issue more debt, potentially pushing interest rates up – the opposite of what Trump hopes for.<h2>Markets set the cost of borrowing</h2>Even if the Fed lowers its overnight rate, broader borrowing costs – such as those on mortgages, corporate loans, and crucially, government bonds – depend on investor demand. Global investors weigh inflation risks, government fiscal discipline and trust in institutions when pricing US debt.&nbsp;If markets perceive a 1 per cent Fed rate as politically motivated and inflationary, they could demand higher yields to compensate for the added risk. Reuters points out that when Trump threatened to fire Fed Chair Jerome Powell in 2024, Treasury yields rose – a clear signal that investors watch central bank independence closely.<h2>A question of trust and credibility</h2>The Fed uses rules and models to guide policy decisions, balancing inflation and growth data to set an appropriate interest rate. None of those frameworks support the kind of extreme cut Trump wants now.Sarah House, senior economist at Wells Fargo, told Reuters such a move would risk unmooring inflation expectations at precisely the moment the central bank needs to keep them anchored.&nbsp;Any sign that the Fed was being used to finance political priorities could undermine trust in US economic management and damage the dollar’s role as the world’s reserve currency.<h2>The bottom line</h2>Trump may see a 1 per cent interest rate as a way to fund his ambitious spending plans on the cheap, but the broader economy could pay the price in the form of higher inflation, reduced investor confidence, and long-term financial instability.&nbsp;While rate cuts remain possible if the economy weakens, economists caution that a sharp, politically driven move now would be risky and irresponsible.&nbsp;

But economists warn such an aggressive move could jeopardize the Fed credibility, spark inflation, and destabilise the $36 trillion Treasury market.

US President Donald Trump has renewed pressure on the Federal Reserve, insisting the central bank should slash its benchmark interest rate to 1 per cent. He argues such a move would cut government borrowing costs and help finance the ballooning deficits driven by his administration’s spending and tax cuts. But economists warn this demand could spell serious trouble for the world’s largest economy. According to Reuters, Trump’s push for ultra-low rates risks undermining the Fed’s credibility, reigniting inflation and rattling investors in the $36 trillion US Treasury market, a critical source of funding for the federal government. Crisis-era rates, but no crisis Historically, a 1 per cent Fed policy rate has been associated with moments of genuine economic distress: the dot-com crash, the aftermath of 9/11, the 2008 global financial crisis, and the COVID-19 pandemic. None of those conditions describe the current US economy. Unemployment is relatively low at 4.1 per cent, GDP growth is around 2 per cent, and inflation sits just above the Fed’s 2 per cent target. Gregory Daco, chief economist at EY-Parthenon, told Reuters that, “There is scope to ease from the current 4.25%-4.50% range, but nothing like the magnitude of cuts Trump envisions.” Daco noted that slashing rates to 1 per cent could alarm markets, signalling that the Fed had bowed to political pressure rather than responding to data, risking a loss of confidence and a spike in inflation expectations. The Fed’s mandate: not cheap borrowing The Federal Reserve’s job is to maintain price stability and full employment, not to make it easier for the government to borrow. Cutting rates sharply when the economy isn’t in recession could spur demand just as new tariffs risk pushing prices higher. Trump’s administration recently passed the “One Big Beautiful Bill Act”, which is expected to widen the budget deficit and increase government borrowing needs. As Reuters notes, larger deficits mean the Treasury will have to issue more debt, potentially pushing interest rates up – the opposite of what Trump hopes for. Markets set the cost of borrowing Even if the Fed lowers its overnight rate, broader borrowing costs – such as those on mortgages, corporate loans, and crucially, government bonds – depend on investor demand. Global investors weigh inflation risks, government fiscal discipline and trust in institutions when pricing US debt. If markets perceive a 1 per cent Fed rate as politically motivated and inflationary, they could demand higher yields to compensate for the added risk. Reuters points out that when Trump threatened to fire Fed Chair Jerome Powell in 2024, Treasury yields rose – a clear signal that investors watch central bank independence closely. A question of trust and credibility The Fed uses rules and models to guide policy decisions, balancing inflation and growth data to set an appropriate interest rate. None of those frameworks support the kind of extreme cut Trump wants now. Sarah House, senior economist at Wells Fargo, told Reuters such a move would risk unmooring inflation expectations at precisely the moment the central bank needs to keep them anchored. Any sign that the Fed was being used to finance political priorities could undermine trust in US economic management and damage the dollar’s role as the world’s reserve currency. The bottom line Trump may see a 1 per cent interest rate as a way to fund his ambitious spending plans on the cheap, but the broader economy could pay the price in the form of higher inflation, reduced investor confidence, and long-term financial instability. While rate cuts remain possible if the economy weakens, economists caution that a sharp, politically driven move now would be risky and irresponsible.

Trump’s push for 1% interest rates alarms economists, who warn it could erode Fed independence, trigger inflation, and spook Treasury markets, despite no recession in sight.

Why Trump’s call for a 1% Federal Reserve rate could backfire on the US economy