FEDvsTrump

Is the Fed’s independence shakier than ever?

President Trump’s campaign of pressure on the Fed since the beginning of the year:
- Repeatedly calling for rate cuts and mentioning over 10 times the possibility of “firing Fed Chair Powell.”
- Treasury Secretary Bessent actively seeking and interviewing potential candidates to replace Powell.
- Fed Governor Kugler unexpectedly resigned without explanation.
- Appointed Stephen Miran as Fed Governor to replace Kugler.
- Considered suing Powell over the renovation project of the Fed headquarters in Washington after personally visiting the site.
- Most recently, dismissed Fed Governor Cook over alleged mortgage fraud, an unprecedented move.

How is President Trump attempting to seize control of an institution designed to be independent?

The key lies in the Fed’s rate-setting body, the Federal Open Market Committee (FOMC), which has 19 members, with 12 voting on U.S. interest rates:
- 7 votes from the Board of Governors in Washington
- 5 votes from regional Fed Presidents (rotating among 12 Fed branches, with the New York Fed always holding a vote)

Of the 7 Board seats, 2 are currently filled by Trump appointees, Christopher Waller and Michelle Bowman. Both supported rate cuts starting in July, marking the first time in 30 years that two Board members dissented from the majority.

If Governor Miran is officially confirmed by the Senate and Trump succeeds in removing Cook, he would secure a 4-3 majority on the Board.

The challenge remains with the regional Fed Presidents voting this year. Collins (Boston Fed) and Goolsbee (Chicago Fed) have already signaled openness to cutting rates as soon as September. Meanwhile, Williams (New York Fed), Musalem (St. Louis Fed), and Schmid (Kansas City Fed) have expressed caution, insisting more data is needed before cutting.

Trump would only need to persuade at least one of them to reach 7 out of 12 votes. At the same time, his administration is aggressively considering 11 candidates to replace Powell when his term ends in mid-2026.
#FEDvsTrump $BTC

#TrumpVsPowell

**Trump vs Powell Tug-of-War: Who Benefits from Winning?**

The recent tension between Donald Trump and Federal Reserve Chairman Jerome Powell has brought attention to the cryptocurrency market, particularly Bitcoin. Trump criticizes Powell for not cutting interest rates as the European Central Bank has done, even threatening to replace him. This situation creates uncertainty in traditional markets, prompting some investors to seek refuge in alternative assets like cryptocurrencies[1][2].

From a crypto perspective, Powell's possible removal could signify a radical shift in American monetary policy. Powell has maintained a tough stance on rates to contain inflation, but his departure could lead to more expansive policies, potentially driving up the price of Bitcoin and other cryptocurrencies[4][7]. However, political uncertainty and potential financial instability also generate volatility, as evidenced by the recent drop in Bitcoin following news of Powell's possible removal[7].

For crypto investors, the question is: is it better for Trump or Powell to win? If Trump manages to replace Powell with a more accommodating figure, lower rates could boost demand for Bitcoin as a safe haven and potentially drive prices up. On the other hand, Powell ensures an independent Fed and a more stable monetary policy, reducing the risk of sudden shocks in the crypto market.

In summary, for those seeking growth and risk, a Trump victory could open speculative opportunities in crypto. For those preferring stability, Powell remains the safer choice.

#PowellRemarks #TrumpTariffs #CryptoBattle #BitcoinVsFed
#FedVsTrump #CryptoVolatility
#BitcoinBull #MonetaryShowdown