According to Nigel Green, Donald Trump is fighting a “quiet and consistent war” about the Federal Reserve system, not through direct conflict, but by reshaping the foundations of US macroeconomic policy.
Green, CEO of Financial Advisory Firmdevere Group, said in a statement to Crypto.News that US President Donald Trump’s tariffs and trade war dominate the headlines, but there are two overlooked strategies that are central to the president’s economic playbook.
“They are the twin tools of Trump’s macroeconomics: domination of digital currency and physical price control,” says Green.
Stablecoins as weapons of financial control
Green is seeing an increase in digital dollar assets that generate profits through tokenized financial bills, and digital dollar assets that form the cornerstone of Trump’s second-term economic agenda.
These stubcoins do more than reflect the value of the US dollar. They create new demand for greenbacks by providing yields to all shapes of holders, including retail investors, decentralized finance platforms, and institutions.
“This is transformational,” explains Green. “That means that anyone, including retail users, global investors and the Defi platform, can often hold dollar-based assets that automatically and seamlessly earn interest.”
According to Green, the strategy serves three objectives:
- It will increase demand for the US Treasury and support the US debt market as a balloon deficit.
- It curbs long-standing Trump’s target of interest rates by encouraging yields through market-based mechanisms rather than policy.
- It will solidify the dollar’s control as a digital reserve currency of the future.
read more: Trump’s USD1 play is “dollar expansion” and he doesn’t love blockchain, says ARI10 CEO
Oil as a lever for inflation control
Stablecoins represent a digital strategy, but oil remains Trump’s most familiar economic tool.
Green argues that Trump sees cheap oil not only as an economic stimulus, but also as a weapon for inflation control. Trump aims to keep business costs low and reduce the need for central bank intervention by pushing for lower prices and increasing domestic production, diplomatic pressure and market impact.
“Cheap oils burn everything,” says Green. “Inflation control through brute force.”
Bypass the FRB
By manipulating both demand (digital yield) and supply (energy price), Trump is creating an alternative system of macroeconomic management.
“He hasn’t fired Jay Powell,” Green concludes. “He’s building parallel systems, and it’s very coherent.”
As the 2024 election cycle intensifies, these strategies may provide a preview of how Trump will reshape US monetary policy without constantly changing the Fed’s leadership.
You might like it too: Trump’s release day allowed to raise the prices of Bitcoin and Altcoin
