Cantor Fitzgerald analyst says Trump's grip on Fed is bullish for Bitcoin

Eric Johnston, chief equity and macro strategist at Cantor Fitzgerald, said on Aug. 26 that risk assets will benefit as President Donald Trump influences the Federal Reserve.

Speaking in an interview with CNBC, Johnston shed light on Federal Reserve Chair Jerome Powell's dovish comments at the Jackson Hole symposium, where he hinted that a rate cut in September is on the way.

Bitcoin, XRP, and other cryptocurrency assets remained relatively flat after the speech, but Ethereum reached an all-time high of $4,935.

However, risk assets fell over the previous two sessions as investor expectations of a rate cut in September lost confidence.

Fed outlook

Johnston argues that the Fed's direction will increasingly align with Trump-appointed members who want to keep the economy running hot with lower interest rates.

"They're going to be looking out 5, 10, 15 years, and trying to balance inflation with employment," Johnston said.

Johnston views Powell's dovish-leaning speech as an indication that the Fed's independence could be impacted by political decisions.

"Okay, so absolutely, in terms of you like the home builders, and we also like small caps. I think small caps do very well in this current environment," he noted. Lower borrowing costs are expected to benefit more debt-laden companies, with investors "more apt to buy a riskier equity."

More policy news:

• Commerce Secretary has a massive update for 'Crypto President'
• Trump signs an executive order to stop banks from cutting off crypto
• SEC invites early-stage crypto projects to meet in Texas

Johnston also projected that the U.S. economy by 2026 would show strong support for low tariffs and positive trends in both on-shoring and foreign direct investment.

Cantor Fitzgerald bullish on Bitcoin

Turning to digital assets, Johnston said Cantor Fitzgerald remains bullish on Bitcoin. "We've been bullish on Bitcoin for a while now," he said, citing cheaper money, increased money supply, institutional adoption, and legislative support.

"All of this should continue to be very positive for Bitcoin, and we think this rally that we've seen will continue."

For Johnston, the following factors present a bullish picture:

• Political priorities
• Dovish monetary policy
• Supportive legislation for digital assets

Bitcoin, he emphasized, is designed to capitalize on the abundance of liquidity and risk-taking behavior.

At press time Bitcoin is trading at $111,313.62, up 1.39%, and Ethereum is up $4,618.99, up nearly 5% in the last 24 hours.

This story was originally reported by TheStreet on Aug 27, 2025, where it first appeared in the MARKETS section. Add TheStreet as a Preferred Source by clicking here.

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