Trump’s State of the Union Signals No Relief on Rates, Ignores Crypto
President Trump's lengthy State of the Union address omitted digital assets while signaling continued high interest rates due to sticky inflation and tariff uncertainty.Summary
Donald Trump's nearly two-hour State of the Union address focused on economic gains, tariff defense, and warnings to Iran, but entirely omitted any mention of digital assets, despite his family's involvement in crypto ventures and his past pledges to make the US the "crypto capital of the planet."
The most significant takeaways for crypto markets were macro: Trump vowed to maintain tariffs despite a Supreme Court setback, leading to chaotic policy revisions. Furthermore, his claims on inflation were contrasted with the reality that the Fed's preferred gauge (core PCE) accelerated, suggesting sticky inflation will keep the Federal Reserve holding interest rates steady, which negatively impacts risk assets like crypto.
While AI received dedicated attention, including a pledge for tech companies to build power plants for data centers, crypto was ignored. The bottom line is that for crypto participants, there is no legislative momentum, macro uncertainty remains due to tariff issues, and the Fed is locked into a higher-rate environment.
(Source：BeInCrypto)