Negative Rates Decision By Trump Condemned By Crypto Community

Zain  |  May 14, 2020

The President of the United States, Donald Trump took to twitter asking the US Fed to start charging taxes on people's saving. He tweeted to pile on more pressure on the Fed and ask them to follow suit like their European competitors and lower the rates.

As long as other countries are receiving the benefits of Negative Rates, the USA should also accept the “GIFT”. Big numbers!

For those who are unaware of how this works, negative rates mean charging banks to store moment and in turn charge the savers.  The US Fed is not interested in this and Jerome Powell the Chairman has publicly denied that he fancies this idea. But given the situation keeps getting worse, voices for this have grown lately and in April, a former officer asked the FED to give it a thought. He added that this is the only way the US Fed can tackle an immensely deep recession which is beckoning.

The crypto community soon joined the conversation and believed that these measures are harsh and unnecessary and just make the situation worse. The community, at every opportunity, has lamented the moves by the US Fed which in their eyes have been shambolic and dreadful.

Trump also received backlash from gold fanatic Peter Schiff who believes this would turn the savers into debtors and add more misery to an already appealing situation.

Negative rates are not a gift. They are a transfer of wealth from savers to debtors. But the inflation created to make negative rates possible will hurt wage earners too, plus the overall economy will be less productive and living standards will be lower as a result.

Negative Rates Decision by President Has No Support From Any Community

Tyler Winklevoss, the co-founder of Gemini Exchange took the opportunity to remind the world the power of bitcoin by pinpointing bitcoin halving, the event which leads to the hardening of the top cryptocurrency, and at the same time took a dig at the measures of US Fed who has failed to save the day so far.

How bad the negative rate advice by Trump could be that the chairman of SEC, a crypto fan and a gold fanatic who barely get along, are all opposing it.

Articles You May Read.

    Related News