The US Fed Chair Jerome Powell has received support from global central bankers. This comes amid the rising tension between him and US President Donald Trump. Support in such a large number has triggered anticipation of no rate cut in the January meeting. Thereby affecting the crypto market to some extent.
Support Flows for US Fed Chair Jerome Powell
Over eight heads of global institutions have backed the actions of US Fed Chair Jerome Powell. They have said that he acted with integrity, adding that the US Federal Reserve was independent in keeping prices plus financial markets stable. Some of the supportive bankers are the heads of the Bank of England, the European Central Bank, and the Bank of Canada.
A joint statement issued by them underlines that all of them stand in full solidarity, highlighting that the independence of a central bank is always a cornerstone to stability in price, economy, and finance.
Notably, this is not the first time Trump has had a feud with Powell regarding a rate cut. A report from last year shows a similar pattern where the US President criticized Jerome for refusing to cut rates.
What Happens to the Fed Rate Cut Now?
There is a 94.5% chance for the Fed Reserve to not change rates, according to Polymarket. The central bank last slashed rates in December 2025 by 25 bps. This brought the lending rate down to the range of 3.5% and 3.75%. Similar reductions were done in September and October 2025.
Additionally, there is a 5.3% chance for a 25 bps reduction and less than 1% chance for a 50 bps reduction.
Slashing lending rates, for a quick reference, increases borrowing power – allowing markets to make more investments in different sectors, including the crypto segment. However, it often triggers nationwide inflation, which, for the US, last dropped to 6.89% in November 2025. This was down from 3.01% in September 2025.
The Trump-Powell Feud
Powell, in a recent report, stated that his indictment was possibly due to refusing rate cuts after the January meeting. Like last year, it is reported that Trump insisted on slashing the rate again in January 2026; however, Powell disagreed by citing that the agency would only take decisions based on its assessment.
For now, the Department of Justice (DoJ) is probing the case, and prosecutors are scrutinizing renovations along with his testimony. Jerome has also claimed that this is an attempt to weaken the independence of the US central bank.
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