Trump May Attempt to Fire Fed Chair Powell
- Trump’s potential move could significantly impact markets and monetary policy.
- Markets currently skeptical about a Powell firing.
- Cryptocurrencies may react strongly if Federal Reserve independence is threatened.
A potential firing of Jerome Powell by Trump would have profound implications for financial markets and the independence of the Federal Reserve.
Two central figures are at play: Donald Trump, former and possibly returning U.S. President, and Jerome Powell, current Chair of the Federal Reserve. Trump has openly criticized Powell, raising concerns within the financial sector. The probability on Polymarket suggests a 19% chance of Trump trying to fire Powell. Financial markets watch such developments closely, anticipating potential upheavals.
“Too Late, whining like a baby about non-existent inflation for months, and refusing to do the right thing.” — Donald Trump, Former U.S. President
An attempt to remove Powell could disrupt US dollar and Treasury markets. In such scenarios, cryptocurrencies like BTC and ETH might see inflows as hedges against monetary instability. Crypto analysts emphasize caution given the low likelihood but potential high impact of this event.
Historical patterns indicate BTC and ETH tend to attract investments during central bank uncertainties. Potential outcomes include market volatility and increased demand for cryptocurrency assets if Trump attempts a Powell dismissal.
