U.S. Treasury Secretary Bessent Urges Against Removing Fed Chair Powell

July 20, 2025 — Treasury Secretary Scott Bessent has privately advised President Trump against firing Federal Reserve Chair Jerome Powell before the end of his term, citing risks to economic stability and financial markets . According to sources, Bessent cautioned that removing Powell prematurely could trigger legal battles—since Fed chairs can only be dismissed “for cause”—and would unsettle markets, potentially derailing upcoming interest rate cuts signaled by the Fed .

At a time when crypto-assets like Ethereum $ETH and Bitcoin $BTC are increasingly sensitive to macroeconomic shifts, such stability in monetary policy has been crucial. Ether recently rallied above 3,600 USDT amid market confidence, while Bitcoin hovers near 118,000 USDT . Analysts note that any disruption in Fed leadership could ripple into crypto, increasing volatility across digital assets.

Bessent’s stance clashes with other administration figures calling for Powell’s removal over controversial Fed renovation costs, reinforcing the importance of central bank independence.