Trump Pushes for Rate Cuts in Europe, Accelerates Crypto Regulation

• Trump pushes for interest rate cuts in Europe and Switzerland.
• European policies strengthen cryptocurrency regulation.
• Eurozone faces low economic growth and inflation.

Donald Trump's return to the presidency of the United States is already starting to provoke reactions significant in global financial markets, especially in Europe. Central banks are adjusting their monetary policies to protect their economies against potential trade wars and currency shocks arising from Trump's protectionist stance.

The Swiss National Bank (SNB) surprised the market by cutting its interest rate by half a percentage point, bringing it down to 0,5%, a level not seen since September 2022. At the same time, the European Central Bank (ECB) cut its base rate by 25 basis points, reaching its lowest level in a year and a half. ECB President Christine Lagarde stressed that “the direction is currently very clear”, signaling that further cuts could occur as early as January and March 2025.

The Swiss franc, often seen as a safe haven in times of crisis, has become a source of concern for the SNB. Antoine Martin, the bank’s vice-president, said that “external risks represent the biggest threat” to the Swiss economy. To protect its currency, the bank is prepared to take measures such as further interest rate cuts, interventions in the foreign exchange market and even a possible return to negative rates.

More flexible monetary policies in Europe are also impacting the cryptocurrency market. The growing interest in crypto assets in the region has led authorities to strengthen regulations to ensure financial stability. Central banks, such as the ECB, are paying close attention to the integration of digital currencies into the financial system, while also seeking to mitigate potential volatility risks in an already fragile environment.

SNB Chairman Martin Schlegel warned speculators against testing the central bank's resolve, stressing that Trump's trade policies could destabilize the Swiss economy, which relies on stable global markets.

In the eurozone, the ECB is struggling with weak economic growth and inflation stuck at 2,3%, below its 2% target. Lagarde has already indicated that the institution will continue to ease its monetary policies. Economists predict that ECB rates could fall to 1,75% by the end of 2025. At the same time, the advancement of European regulations, such as the MiCA (Markets in Crypto-Assets) package, aims to provide greater clarity and legal certainty to the cryptocurrency market, with the aim of attracting investors without compromising economic stability.

Meanwhile, other central banks, such as Canada, are already taking preventive measures. Brazil’s central bank, on the other hand, raised its rates by 100 basis points to strengthen the real amid global tensions. Investors are keeping a close eye on Trump’s inauguration, scheduled for January 20, when he promises to bring profound changes to the global financial system.