A brewing conflict between President Trump and Federal Reserve Chair Jerome Powell raises concerns among investors about potential political pressure leading to rate cuts that could benefit risk assets like Bitcoin. Republican dissatisfaction with the Fed's prolonged high-interest rate policy has intensified, with some blaming it for stifling growth in equity and crypto markets. Reports suggest Trump had a resignation letter for Powell prepared but hesitated despite favorable feedback from Republican lawmakers. Analysts warn that Trump's actions could create a 'Shadow Fed' to undermine Powell's authority. While Trump hasn't formally moved to dismiss Powell, speculation about a future Fed chair who might favor rate cuts is growing. This uncertainty could lead to short-term volatility in crypto prices. The Federal Reserve Act protects Powell from dismissal over policy disagreements, but Trump could still exert pressure through public criticism or congressional hearings. Although a potential firing might temporarily boost crypto prices, it could ultimately destabilize the financial system that cryptocurrencies rely on. Read more AI-generated news on: https://app.chaingpt.org/news