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Trump’s Explosive Interview Walkout Buried a Bigger Message for Markets

As an analyst, I observed President Trump advocating for lower interest rates and asserting his belief that economic growth doesn’t necessarily lead to inflation. He then ended his interview with Kristen Welker on Meet the Press.

While the video of the walkout is getting a lot of attention online, the underlying policy changes revealed during that exchange are much more important for Bitcoin, oil, and the stock market.

The Walkout Buried a Clear Message on Rates

During the interview, Welker questioned Trump about the possibility of the Federal Reserve increasing interest rates now that Kevin Warsh is the new chair.

The Senate approved Warsh as the new Fed chair on May 13th with a close vote of 54 to 45 – the smallest margin of victory for any Fed chair confirmation. He will lead his first policy meeting on June 16th and 17th, at a time when interest rates are currently between 3.50% and 3.75%.

Trump pushed the opposite way.

Raising interest rates isn’t necessary. A strong economy is what makes our country successful, and we’ve always thrived when rates are kept low.

The President is highlighting a new report showing strong job growth. The economy added 172,000 jobs in May, which is about twice what experts predicted, and the unemployment rate remained steady at 4.3%.

As a crypto investor, I found it interesting to hear Trump essentially dismiss the idea that a strong job market automatically leads to inflation. For years, economists have believed in something called the Phillips Curve, which suggests those two things are connected. He’s basically saying he doesn’t buy that traditional thinking.

“Growth is the greatest thing you can have and growth does not cause inflation.”

This approach echoes a pattern from Trump’s first term. He previously criticized then-Federal Reserve Chair Jerome Powell throughout 2018 and 2019, pressuring the Fed to lower interest rates.

It’s interesting – the focus is now on someone with a somewhat contradictory background. Jerome Warsh established himself as a firm advocate for higher interest rates and actually left the Federal Reserve board back in 2011 because he disagreed with the policy of quantitative easing. As a researcher, I find this history particularly relevant to the current situation.

I really admire Kevin and I’m happy to support his decisions. I don’t want to pressure him or tell him what to do.

Markets are not listening yet. CME FedWatch prices a 96% chance of a hold this month.

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Oil Prices Hinge on the Iran Endgame

The war in Ukraine dramatically changed energy prices starting in late February. The price of Brent crude oil surged from around $72 to almost $120 per barrel, before falling back to about $94 by Friday.

AAA puts the national gas average at $4.17 per gallon, up $1.16 since the Iran war began.

This is the economic situation Jerome Powell is taking over. When asked if gas prices have reached their highest point, Donald Trump declined to say.

The timing is uncertain and depends on how the conflict unfolds. It might happen right after providing assistance, or if we reach an agreement, it could happen immediately. Otherwise, it will likely happen once everything is concluded.

Either path ends the same way, he argued, with gasoline prices set to “drop like a rock.”

An agreement would also allow ships to pass through the Strait of Hormuz again, a vital waterway for about 20% of the world’s oil.

Bigger Budgets, Bigger Liquidity

Trump also signaled more military spending on top of a record base.

We’re facing some financial challenges and have priorities we need to address. I’m committed to significantly increasing funding for the military.

The proposed budget for 2027 includes $1.5 trillion for defense, which is the highest amount requested in a single year since World War II, according to the Center for Strategic and International Studies (CSIS).

The Office of Management and Budget estimates a budget deficit of $2.06 trillion this year, increasing to $2.17 trillion next year. To cover this shortfall, the Treasury Department will need to borrow over $166 billion each month.

As a researcher following the Bitcoin market, I’ve noticed something interesting: decreasing interest rates combined with an increase in the amount of new Bitcoin being issued suggests we’re seeing more liquidity enter the market. Liquidity is key for traders like those in the Bitcoin space, and it’s a metric I closely monitor.

There’s a downside to this deal, though. If oil prices stay high for a long time, it could cause inflation to rise, potentially prompting Warsh to take a more aggressive stance on monetary policy.

The June 17 decision offers the first test of whether the President’s message moves his new chair.

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2026-06-07 21:19