When Federal Reserve official Neel Kashkari said the central bank has “tools to provide more liquidity,” crypto Twitter lit up. Many took it as code for: we might print more dollars. But what would that mean for Bitcoin?
Let’s break it down.
Will the Fed Actually Print More Money?
So far, the Fed isn’t making any sudden moves. Officials are waiting to see how global trade negotiations shake out before deciding on next steps. Kashkari made it clear: the Fed’s top priority is controlling inflation, not bailing out the economy or responding to tariff drama just yet.
Good news is, inflation is cooling. In March, the consumer price index (CPI) came in at 2.4% — almost at the Fed’s 2% target. Even better, prices dropped 0.1% in March, something we haven’t seen in five years.
Because of this, the Fed may hold off on cutting interest rates, even though former President Trump is pushing hard for it. He wants cheaper borrowing, a weaker dollar, and stronger exports.
Trump vs. The Fed: A Brewing Power Struggle
Behind the scenes, tensions are rising between Trump and Fed Chair Jerome Powell. Trump reportedly wants Powell out — even considering legal action to remove him before his term ends.
But firing the Fed Chair isn’t easy. The president can’t just say “You’re fired” — he needs a legal reason.
So, What’s at Stake for Bitcoin?
Here’s where it gets interesting. If the Fed does end up injecting more liquidity — aka printing more money — it could weaken the dollar. That’s usually a bullish sign for Bitcoin, which thrives as an inflation hedge and alternative to fiat currencies.
But if the Fed holds the line, keeps rates high, and the dollar stays strong? Bitcoin might feel the pressure in the short term, especially if traditional markets stay shaky.
In short: Bitcoin is waiting, just like the rest of us, to see what the Fed does next.
