Trump Tariff Strategy Could Cut Income Taxes Ahead of Fed Rate Cuts

Monicah W

The post Trump Tariff Strategy Could Cut Income Taxes Ahead of Fed Rate Cuts appeared first on Coinpedia Fintech News

President Donald Trump



President



hinted that Americans could soon see a dramatic shift in how the government is funded, possibly eliminating federal income taxes. In a Truth Social post on April 27, Trump suggested that once his new Trump Tariff policies on imported goods are fully in place, income taxes could be “substantially reduced,” especially for those earning under $200,000 a year.

Trump introduced a new concept called the “External Revenue Service,” proposing that tariffs, rather than income taxes, could support the government. He described it as a return to an earlier model, pointing to the 19th-century Gilded Age when the U.S. operated without an income tax.

Could Lower Taxes Boost Investments and Crypto?

Lower income taxes could leave Americans with more disposable income, potentially sparking increased investment in stocks, real estate, and cryptocurrencies. Market watchers note that extra take-home pay often translates into higher consumer spending and asset growth. However, analysts caution that the broader economic impact — especially against the backdrop of Fed rate cuts and fluctuating markets — will ultimately determine whether the plan would fuel major investment surges.

Skepticism Grows Over Lack of Details

This isn’t the first time Trump has floated the idea. He previously mentioned the concept during a 2024 appearance on the Joe Rogan Experience. Critics argue that Trump has yet to provide a clear roadmap on how a tariff-funded government would work, especially at current spending levels.

Research from Dancing Numbers suggests eliminating income taxes could save the average American more than $134,000 over a lifetime, with even greater savings if payroll taxes are removed. Still, experts warn that relying solely on tariffs might not generate enough revenue without significant changes to federal spending.

U.S. Commerce Secretary Howard Lutnick, a strong supporter of Trump’s tariff strategy, has also advocated for scrapping the IRS. In January 2025, Lutnick pointed to the early 1900s, when tariffs helped make America the world’s richest country, arguing that protecting domestic workers through Trump Tariff measures could once again boost national wealth.

New Tax Proposals Emerge

Financial strategist Bert Dohmen has pitched additional tax ideas for Trump to consider. He proposes exempting seniors over the age of 76 who operate small businesses from income taxes, arguing that the administrative burden is too high for older entrepreneurs.

Dohmen also recommends offering tax incentives for families, suggesting a 10% tax exemption per child, capped at a 50% total reduction, to encourage higher birth rates — a growing concern among industrialized nations.

Markets Wobble Amid Trump Tariff Uncertainty

While Trump signed an executive order to introduce sweeping new tariffs earlier this month, frequent revisions and policy shifts have injected volatility into the markets. Stocks and bond yields have reacted sharply, with many analysts warning that the evolving Trump Tariff framework is creating more uncertainty than stability.

The instability comes at a critical time when markets are already bracing for the impact of potential Fed rate cuts later this year. Investors will closely watch how Trump’s tariff-driven vision and the Fed’s monetary policy intersect to shape the economic landscape ahead of the 2026 election season.

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XRP Loses Momentum After SEC Boost and Enters Consolidation Phase

XRP is up more than 8% over the past seven days, but it hasn’t been able to maintain the strong momentum sparked by the SEC dropping its lawsuit against Ripple.

After the initial surge, XRP has entered a phase of consolidation, with price action stuck between key support and resistance levels. Technical indicators now reflect a market on pause, with momentum fading and direction unclear.

XRP RSI Is Currently Neutral

XRP’s Relative Strength Index (RSI) is currently at 52.89, a notable drop from 63.90 just one day ago. This sharp decline signals a weakening in recent bullish momentum, as buyers appear to be losing control over the short term.

RSI has now slipped closer to neutral territory, suggesting that market participants are increasingly uncertain about the next move.

Importantly, XRP hasn’t reached RSI levels above 70—commonly associated with overbought and strongly bullish conditions—since March 19, over a week ago, indicating a lack of strong buying pressure during this period.

XRP RSI.
XRP RSI. Source: TradingView.

RSI, or Relative Strength Index, is a widely used momentum oscillator that measures the speed and change of price movements on a scale from 0 to 100.

An RSI reading above 70 typically signals that an asset is overbought and could be due for a pullback, while a reading below 30 suggests it may be oversold and primed for a bounce. Values between 50 and 70 generally reflect bullish momentum, whereas readings between 30 and 50 lean bearish.

With XRP now sitting at 52.89, it remains above the midpoint but is edging closer to neutral, suggesting the recent bullish phase may be cooling off unless renewed buying activity steps in.

Ichimoku Cloud Shows An Indecisive Market

XRP’s Ichimoku Cloud chart shows a market in consolidation, with price action hovering just above the cloud but lacking strong momentum.

The Tenkan-sen and Kijun-sen lines are relatively flat and close together, indicating a pause in trend strength and a balance between buyers and sellers.

The lack of a clear Tenkan/Kijun crossover also supports the idea that the market is in a neutral phase rather than trending decisively in either direction.

XRP Ichimoku Cloud.
XRP Ichimoku Cloud. Source: TradingView.

The cloud ahead is thin and slightly bullish. This suggests that while there is some support beneath the price, it’s not particularly strong.

A thin cloud typically signals potential vulnerability, as it may not hold up well against increased selling pressure. Meanwhile, the Chikou Span (lagging line) is interacting closely with past price action, another sign that momentum is weakening.

Overall, the Ichimoku setup reflects uncertainty, with XRP needing a decisive push in either direction to escape this range-bound structure.

Will XRP Breach $2.50 Resistance?

XRP experienced a strong surge following the news that the SEC had dropped its case against it. However, that initial momentum has since cooled.

The price is now caught between a resistance zone at $2.47 and support at $2.35. That highlights a phase of consolidation and indecision.

If the current support level is retested and fails to hold, XRP could see increased selling pressure. That would open the door for a move down to $2.22. If bearish momentum intensifies, a deeper drop toward $1.90 is possible.

XRP Price Analysis.
XRP Price Analysis. Source: TradingView.

On the flip side, if buyers can regain control and push XRP price above the $2.47 resistance.

The next targets in that scenario would be $2.59 and $2.749, both of which align with previous areas of rejection.

If the uptrend gathers strength, XRP could climb as high as $2.99.

The post XRP Loses Momentum After SEC Boost and Enters Consolidation Phase appeared first on BeInCrypto.

Chainlink Whales Bag $36M Coins Hinting At LINK Price Breakout Ahead

Chainlink Whales Bag $36M Coins Hinting At LINK Price Breakout Ahead

Chainlink whales’ recent decision to hoard massive amounts of LINK coins has reverberated substantial optimism surrounding the crypto’s future price movements. On Thursday, April 24, whale data revealed that slightly over $36 million worth of tokens were bagged by large-scale investors in recent days. The upshot? Everyday traders and crypto civilians are now anticipating a price rally in one of the most renowned cryptocurrencies shortly ahead.

Chainlink Whales On Buying Spree Ignite Optimism, Here’s Why

According to the transaction tracker Lookonchain’s X post, numerous fresh whale wallets have embarked upon a Chainlink accumulation spree recently. At least 15 different wallets were recorded to have stacked 2.52 million coins, worth $36.43 million, from Binance.

Notably, these accumulations occurred over the duration of the past week. LINK coin’s price has been up nearly 13% within the same duration, in sync with the heightened buying pressure on the asset.

For context, usual market sentiments remain highly bullish in the wake of rising crypto whale accumulations, as they increase the buying pressure on an asset. Further, the spike in accumulations also signals burgeoning market confidence in a cryptocurrency.

In response, crypto commoners now anticipate whether a bullish breakout lies ahead, as also hinted by the massive Chainlink whale accumulations.

LINK Price Prediction: Here’s What Analyst Has To Say

Despite the massive accumulations recorded, LINK price has tanked over 4% intraday, closing in at $14.20. The crypto fell from a high of $15.23 in the past 24 hours. This volatile price action, despite the massive buying, has sparked some cautiousness among market watchers.

It’s worth pointing out that the current turbulent price action potentially aligns with today’s broader crypto market trend. Bitcoin’s price also faced some volatility, losing 2% in the past 24 hours, banking at $91k. Major-league altcoins have also mainly mimicked this uncertain action.

However, a renowned crypto market analyst has retained a bullish stance on LINK, irrespective of broader trends. Market expert Michaël van de Poppe recently took to X, hinting that utility & DeFi coins are going to be the leaders in the upcoming cycle.

Particularly hinting towards Chainlink, the analyst stated that “This run will likely be higher than the previous one,” sparking optimism alongside the whale accumulations.

LINK price chart
Source: Michaël van de Poppe, X

Michaël reiterates that the crypto team has been working extensively to get major partnerships in the U.S. In turn, he believes that the token’s ecosystem has expanded massively. “Matter of time until the token reflects the growth,” he concluded.

Another Chainlink price prediction by CoinGape revealed that bulls currently remain dominant over the crypto, per the 3-month bias indicator. This signals that the coin could even hit $16 by April end.

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