- The President of the United States, Donald Trump called on the federal reserve this week to tax people and their savings.
- It didn’t take long for members of the crypto community to start responding to the president for this move.
The President of the United States, Donald Trump called on the federal reserve this week to tax people and their savings. It didn’t take long for members of the crypto community to start responding to the president for this move.
As Trump took to Twitter on Monday, the president renewed pressure on the federal reserve. Trump has for a long time now suggested that the reserve should keep pace with Europe in lowering its rates. You can see the tweets below:
As long as other countries are receiving the benefits of Negative Rates, the USA should also accept the “GIFT”. Big numbers!— Donald J. Trump (@realDonaldTrump) May 12, 2020
For those that don’t know, negative rates involve charging banks to store money, and in turn, involves charging savers. Federal Reserve chairman, Jerome Powell has said that he is against their introduction, But in April a former official joined calls to send the United States rates negative for the first time in history. The former Minneapolis fed president, Narayana Kocherlakota said the following:
“The U.S. Federal Reserve should fight a rapidly deepening recession by taking interest rates below zero for the first time ever.”
The crypto community said that by taxing savers, the situation involving the coronavirus has only worsened.
One well-known figure within the crypto space, Tyler Winklevoss, the co-founder of the Gemini platform responded to the president's words:
As the Fed adopts a controlled Weimar strategy, Bitcoin just completed its third halving.— Tyler Winklevoss (@tylerwinklevoss) May 12, 2020