According to the latest information from Watcher.Guru, Federal Reserve Chairman Jerome Powell is reportedly considering resigning. Although not confirmed, this development has attracted widespread attention in financial and political circles, particularly due to its potential impact on monetary policy, investor confidence, and the digital asset market, especially XRP.

Increased Political Pressure and Controversy Over the Renovation

These speculations arise after increasing criticism of the $2.5 billion renovation project of the Federal Reserve headquarters in Washington, D.C., an initiative often referred to as the "Versailles Palace." Critics, including members of Congress and President Donald Trump, have accused Powell of misleading lawmakers by downplaying the project's extravagance. This backlash has led to an official investigation by the Office of Management and Budget.

On July 8, President Trump publicly called for Powell to resign immediately, blaming him for not responsibly managing interest rates and poorly handling the communication regarding the renovation project. Adding fuel to the fire, Bill Pulte, director of Fannie Mae and Freddie Mac, posted on X: "I am very excited to hear that Jerome Powell is considering resigning... I think this would be the right decision for America, and the economy will thrive."

The Uncertainty Surrounding Succession and Market Reaction

Although Powell's term extends to May 2026, internal sources cited by Watcher.Guru indicate that the Chairman is under significant pressure and may voluntarily resign. Despite the increasing speculation, there has been no official announcement regarding a resignation, and those within the White House assert that the transition process is not yet underway.

The names being considered as potential successors include Treasury Secretary Scott Bessent, former Fed Governor Kevin Warsh, and economist Kevin Hassett. However, any leadership change at the Fed, especially under pressure, could be perceived as politically motivated and risk undermining investor confidence in the central bank's independence.

Impact on Interest Rates and Liquidity of Cryptocurrencies

From a financial perspective, Powell's resignation could signal a significant shift in monetary policy. His departure could open the door for a more dovish Federal Reserve, likely to cut interest rates sooner than expected. This change would inject more liquidity into the financial system, which is often a strong catalyst for risk assets, including cryptocurrencies.

For XRP, this potential increase in liquidity could translate into strong growth momentum. Historically, XRP has performed well in low-interest-rate environments and a weakening dollar. During a similar loosening phase in April 2025, XRP surged 4% in a week to $2.12.

The Significance of XRP and the Cryptocurrency Market in General

If Powell steps down and his successor shifts to a looser monetary stance, XRP and other cryptocurrencies may experience significant price increases due to increased capital inflows. However, a chaotic or politically charged resignation could temporarily dampen market enthusiasm, especially if it causes policy instability.

As the reports continue to attract attention, investors across traditional and digital markets are closely monitoring. Whether Powell continues or resigns, this story has been and will continue to influence expectations and may set the stage for a new growth phase in the cryptocurrency market. $XRP