Current Situation
• Jerome Powell has not officially resigned as Fed Chair
• Speculation sparked by Bill Pulte (FHFA Director) comments
• Fed maintains silence while political pressure mounts
• Powell's term officially ends May 2026
Market Implications
Traditional Markets:
• Treasury yield curve likely to steepen if Powell exits
• USD faces downward pressure amid policy uncertainty
• EUR, JPY, CHF positioned for potential gains against USD
Crypto Response:
• BTC surged 10% on initial rumors (July 11)
• Potential dovish replacement could sustain bullish momentum
• Lower rates historically benefit risk assets including altcoins
Trading Considerations
• NY Post Report triggered initial volatility
• Politico Investigation examines White House pressure
• Fact-checkers debunked official resignation claims
• Binance Square shows traders divided on implications
Consider scaling into positions if dovish narratives strengthen, but maintain hedges given the speculative nature of these developments.
