Donald Trump is waging a “quiet and consistent war” on the Federal Reserve
Donald Trump is waging a “quiet and consistent war” on the Federal Reserve, not through direct confrontation, but by reshaping the foundations of U.S. macroeconomic policy, according to Nigel Green.
Green, the CEO of financial advisory firm DeVere Group, said in a statement to ethdaily.net that U.S. President Donald Trump’s tariffs and trade wars dominate headlines while there are two overlooked strategies that are central to the president’s economic playbook: stablecoins and cheap oil.
“They’re the twin tools of Trumpian macroeconomics: digital monetary dominance and physical price suppression,” says Green.
Stablecoins as a weapon of monetary dominance
Green sees the rise of yield-bearing stablecoins, digital dollar assets that generate interest through tokenized Treasury bills, as a cornerstone of Trump’s second-term economic agenda. These stablecoins do more than mirror the value of the U.S. dollar. They create new demand for the greenback by offering yield to holders of all shapes in sizes ranging from retail investors, decentralized finance platforms, and institutions.
“This is transformative,” Green explains. “It means that anyone—including retail users, global investors, DeFi platforms—can hold a dollar-based asset that earns interest, often automatically and seamlessly.”
The strategy serves three purposes, according to Green:
- Boosting demand for U.S. Treasuries, supporting the U.S. debt market as deficits balloon.
- Suppressing interest rates, a long-time Trump goal, by incentivizing yield through market-based mechanisms rather than Fed policy.
- Cementing the dollar’s dominance as the digital reserve currency of the future.
Oil as a lever of inflation control
While stablecoins represent a digital strategy, oil remains Trump’s most familiar economic tool. Green argues that Trump views cheap oil not just as economic stimulus, but as a weapon for inflation control. By pushing for lower prices, through increased domestic production, diplomatic pressure, and market influence, Trump aims to keep business costs low and reduce the need for central bank intervention.
“Cheap oil fuels everything,” Green says. “It’s inflation control by brute force.”
Bypassing the Fed
By manipulating both demand (digital yield) and supply (energy prices), Trump is creating an alternative system of macroeconomic management, one that sidesteps the traditional tools of the Federal Reserve.
“He’s not firing Jay Powell,” Green concludes. “He’s building a parallel system. It’s remarkably coherent.”
As the 2024 election cycle intensifies, these strategies may offer a preview of how Trump could reshape U.S. monetary policy without ever changing the Fed’s leadership.