Federal Reserve Chairman Jerome Powell is reportedly considering resigning, a move that has received support from influential figures in the financial sector. William J. Pulte, Chairman of the Board of Fannie Mae and Freddie Mac, has publicly expressed agreement with the possibility of Powell resigning.
In a statement posted on his verified X account, Pulte said he "Feels Excited" about the reports. He continued to say that Powell's resignation would greatly benefit America as he could ensure the economy recovers faster.
The current move comes amid escalating tensions between Trump and Powell. Their disagreements have been exacerbated by differing views on interest rate policy and its impact on economic growth. Trump has repeatedly called for the Fed to cut interest rates by three percentage points.
Trump has highlighted new highs in the technology and cryptocurrency markets on his TruthSocial page. He stated that the Federal Reserve needs to act swiftly to lower interest rates in light of these encouraging signs.
However, Powell has warned against impulsively cutting interest rates. He believes that loosening tariffs could lead to inflation and a weak dollar, and that policy should not be loosened too soon. This has led many to speculate that this chairman is not in sync with the current administration's economic policy.
Fed Policy Change Could Boost Market Growth
If Powell resigns, Trump would have the opportunity to appoint a Fed chairman more aligned with his vision. This could lead to faster interest rate cuts to stimulate the market sooner than expected, by the end of 2025.
Such a change would only benefit the cryptocurrency market, which is on a growth trajectory. Lower interest rates may attract more capital into higher-risk assets such as digital currencies.
Analysts believe that a Fed aligned with Trump could also lead to more consistent economic messaging. This would not only bolster broader financial confidence but also support the administration's expansionary agenda.
As support for Powell's departure grows and Trump pushes for immediate policy changes, the future direction of U.S. monetary policy is being placed in a difficult position. The market is currently preparing for potential changes that could impact national economic outcomes.