The post Former Reagan Advisor Explains Trump’s Fed Failures appeared on BitcoinEthereumNews.com.

Markets widely expect the Federal Reserve to hold interest rates steady at Wednesday’s FOMC meeting. In an interview with BeInCrypto, former Reagan advisor Steve Hanke agreed, citing persistent inflation. Hanke argued that growing policy uncertainty has distorted US economic priorities. He said the effects are no longer confined to monetary policy but are increasingly visible in trade, currency markets, and global confidence in US leadership. Sponsored Fed to Hold Rates Amid Political Pressure Ahead of the next FOMC meeting, there is widespread expectation that the Federal Reserve will not cut interest rates.  The decision will come amid significant pushback from the Trump administration, which has reiterated its desire for the Fed to cut interest rates.  Hanke sided with the Fed, looking at inflation as the natural explanation. “The inflation genie in the United States has not been shoved back in the bottle. Inflation has come down, but it’s been stuck for six months or so, and I anticipate that it’s going up,” Hanke told BeInCrypto, adding, “The reason for that is the monetary policy is becoming looser and looser under, in part, pressure from the White House.” Sponsored Earlier this month, the Department of Justice (DOJ) initiated a criminal probe into Fed Chair Jerome Powell. The news came less than a year after the DOJ opened another criminal inquiry into Fed governor Lisa Cook for mortgage fraud. Rather than prompting the Fed to comply, Hanke said the pressure is likely to reinforce the central bank’s resolve. “With this threat of a criminal suit against Chairman Powell, I think the Fed establishment decided that they were going to dig in and not let Trump push them around,” he said. Hanke said this pattern of resistance extends beyond monetary policy, reaching other parts of the administration’s economic agenda. Sponsored Global Trade Pushback…

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Filed under: News - @ January 28, 2026 1:25 am