Donald Trump Reacts to the Fed Rate Cuts & XRP Price Surges Amid Federal Reserve Meeting

The Federal Reserve meeting results show that they have kept the 4.25% to 4.50% federal funds rate. This marks the second meeting where the Fed has not changed the interest rates. It is speculated that this decision was made because of fears of recession, economic uncertainty, and turmoil. The new 2025 projections from the central bank are also increasing the fears of a future recession.

Fed Lowers GDP Forecast: What It Means for the Economy

Based on the updated projections the US GDP growth is lowered from December’s 2.1% to 1.7%. The unemployment rate was also updated, going from  4.3% to  4.4%. Additionally, PCE inflation saw a 0.2% increase going from 2.5% to 2.7%. Core PCE inflation went up 0.3% from 2.5% to 2.8%. Moreover, the Fed also released its prediction of two 50-basis-point interest rate cuts, which is in line with market projections. Donald Trump reacted to the Fed’s decision to keep the rates unchanged, urging them to cut rates in April.

⚡️ JUST IN: Trump just stated that the Fed would be much better off cutting rates. pic.twitter.com/aGk7XT9wxG

— Mayank Dudeja (@imcryptofreak) March 20, 2025

Additionally, after the Federal Reserve meeting, the Central Bank released a statement which stressed the increase in inflation. This statement also had some positive points and highlighted that the labor market remains prosperous. As such it was mentioned that changes in inflation and labor market data will affect the Fed’s future policies. Such a cautious approach was also seen in last month’s Fed meeting. 

Is Bitcoin’s Recent Surge Linked to the Fed?

The market response to the Fed’s decision has been underwhelming, with most cryptocurrencies continuing their previous bullish price trajectory. Before the Fed’s announcement, Bitcoin was slowly climbing toward the $86,000 price point. After the Fed chair’s speech, the BTC price surge continued and reached a peak of  $87,431. Since then, however, its price has fallen, and it is now trading at $85,875. It is not clear whether this growth in price was caused by the Fed’s announcement or the coin’s natural growth. 

Based on the BTC’s on-chain data a general bullish sentiment has been apparent for this coin. This is because the data shows a lowered selling pressure from users who have held BTC for 155 days or more. Such bullish sentiment is apparent even after BTC’s significant crash to $76,000, which was recorded on March 11. However, the XRP price surge might point to a market-wide rally, creating doubts regarding the cause of the BTC price surge.

XRP Soars While ETH Remains Steady at $2,000

In the last 24 hours, we have seen XRP price surge nearly 15%. XRP reached a peak of $2.7 and as of now is trading at $2.5. However, this surge can also be attributed to other developments rather than the Fed’s announcement. This is because Ripple’s CEO has announced that the SEC is revoking its lawsuit against XRP. This positive news and the mentioned price surge have caused $11.96 million of XRP short positions to be liquidated.

Ethereum has also seen a moderate increase in value as it has gone above $2,000. In the last 24 hours, this digital asset has reached a peak of $2,067. Since then its price has declined and now is trading near the $2,020 point. However, this increase also seems to be naturally occurring as the price has been showing higher lows. 

Recession Fears Loom as Inflation Climbs 

As global economic conditions remain chaotic, investors should expect a prolonged period of uncertainty and volatility. If inflation continues to rise, it could increase the worries of a recession and force higher Interest rate cuts. As such, market fluctuations are set to continue in the upcoming months, and the crypto market will most likely remain unstable.