Trump's Quietly Pulling Two Major Levers To Sidestep Fed

(MENAFN- Investor Ideas) Investorideas, rated as a top 100 investment website for investment issues market commentary from deVere Group's Nigel Green.

Donald Trump is waging a "quiet and consistent war" on The Federal Reserve by promoting stablecoins and cheap oil to give him economic control without interference from the US central bank.

This is the controversial analysis from the CEO of one of the world's largest independent financial advisory giants as the US president pushes ahead with his much-publicized tariffs and trade wars, but other factors in his playbook are being "routinely overlooked" by analysts.

deVere Group's Nigel Green comments: "Trump's zigzagging trade policies and aggressive tariffs are dominating both economic and political agendas worldwide-but investors need to also focus on two other major levers that the President of the world's largest economy is consistently focused on.

"First, the use of stablecoins and tokenized Treasuries to entrench the dollar's global dominance, keep interest rates lower, and boost investor appetite for US debt.

"And second, the driving down of oil prices, through increased domestic production, diplomatic pressure, and market manipulation, to keep inflation low and growth strong.

He continues: "They're the twin tools of Trumpian macroeconomics: digital monetary dominance and physical price suppression."

Trump now sees stablecoins as instruments to reinforce US financial power. These assets serve a very specific function in the Trump playbook: they create new demand for the dollar while making US Treasuries more attractive globally.

These stablecoins are not just digital dollars-they're digital dollars that pay yield. Unlike traditional stablecoins like USDC or USDT, which merely hold value, yield-bearing stablecoins generate returns, typically from tokenized Treasury bills.

"This is transformative. It means that anyone-including retail users, global investors, DeFi platforms-can hold a dollar-based asset that earns interest, often automatically and seamlessly," notes Nigel Green.

This supports the Trump 2.0 agenda in three powerful ways.

"Firstly, when people buy them, they're indirectly buying US debt. This increases the natural global demand for Treasuries at a time when the US deficit is exploding and foreign central banks, among others, have reduced their holdings," says the deVere CEO.

"Secondly, they suppress the need for higher interest rates. Trump has never been comfortable with high rates.

"He sparred with Jerome Powell repeatedly during his first term, calling rate hikes 'crazy' and accusing the Fed of sabotaging growth. In his second term, he continues to push for cheaper borrowing-but this time, he's turning to tech rather than confrontation."

By creating a market where yield-bearing stablecoins generate decentralized, democratized yield, the Trump administration is trying to replace conventional interest rate tools with market-based digital incentives.

"Thirdly, they cement the dollar as the digital reserve currency. If the world prefers digital assets, let them be dollar-based, interest-earning digital dollars."

While stablecoins represent Trump's digital strategy, oil is his oldest and most familiar economic lever.

He's always viewed oil not just as a commodity, but as a weapon of economic dominance.

The chief executive of the deVere Group, which has $14bn under advisement, explains: "Trump's reasoning is that cheap oil fuels everything. It keeps inflation down, consumer spending up, and business costs low. And when oil prices are low, central banks have less reason to tighten.

"Cheap oil means cheaper logistics. It brings down the cost of agricultural production, air travel, shipping, and industrial activity. It's inflation control by brute force."

These two policies-digital yield and physical supply-may seem worlds apart. But in Trump's hands, they serve the same purpose: "economic control without central bank cooperation," notes Nigel Green.

The CEO concludes: "He's found ways to manipulate demand (via yield-bearing stablecoins) and supply (via oil) to try to sidestep the traditional tools of monetary policy.

"In many ways, Trump is waging a quiet and consistent war against the Fed. Not by firing Chair Jay Powell, but by creating alternative channels of macroeconomic management.

"It's remarkably coherent."

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