FederalReserve

🔹 Tensions between Donald Trump and Federal Reserve Chair Jerome Powell are heating up. Trump has repeatedly criticized Powell for delaying interest rate cuts – and speculation about a potential replacement is gaining traction. Who could be next to lead the U.S. central bank?

⚖️ Trump vs. Powell: A Clash Over Tariff Policy
Donald Trump has long called on the Fed to cut interest rates, especially in response to his implementation of new import tariffs. He points to the European Central Bank’s ten rate cuts as a benchmark, suggesting the Fed is falling behind.
Powell, however, insists that the Fed must first evaluate the impact of tariffs on the economy before making any drastic policy moves. This disagreement has fueled rumors of Trump possibly removing Powell from his post – but it’s not that simple.

🏛️ Can Trump Really Fire Powell?
Despite the president’s powerful role, the Federal Reserve is an independent institution, and the chair cannot be dismissed at will. The U.S. Supreme Court recently reaffirmed this independence, noting that the Fed operates differently from typical federal agencies.
This means Powell is likely to remain in office until his term ends in May 2026. Nevertheless, Trump has already started vetting potential successors, and informal interviews have reportedly begun within his economic advisory team.

🧠 Who Could Replace Powell?
According to White House economic correspondent Brian Schwartz, the following candidates are under consideration:
🔹 Kevin Warsh – Former Fed governor

🔹 Kevin Hassett – Former head of the National Economic Council

🔹 Christopher Waller – Current Fed governor

🔹 David Malpass – Former World Bank president

🔹 Scott Bessent – Trump’s top choice for Treasury Secretary
Each of these candidates is known for their strong economic backgrounds and Republican alignment, making them favorable in Trump’s eyes – although each faces their own hurdles.

📊 Market Predictions: Who’s in the Lead?
On the prediction market platform Polymarket, investors are already betting on who might succeed Powell. The current odds show:
🔹 Kevin Warsh – 23%

🔹 Christopher Waller – 21%

🔹 Kevin Hassett – 17%

🔹 Scott Bessent – 11%

🔹 Judy Shelton – 10%
Interestingly, there’s also a 16% chance that no replacement will be named this year, suggesting the decision may come in 2026 or just ahead of Powell’s term expiration.

🧠 What Does This Mean for the Markets?
While Powell continues to pursue a cautious monetary policy, Trump is already thinking ahead, aiming to position someone more aligned with his economic agenda. The next Fed chair will play a critical role in shaping U.S. monetary policy – and that choice could have ripple effects across the global financial system.

#Fed , #JeromePowell , #DonaldTrump , #FederalReserve , #economy

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,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“

Tensions are rising at the top of the U.S. central bank. President Trump wants rapid interest rate cuts, while Fed Chair Jerome Powell and most of his team remain cautious.
Back in the White House, President Donald Trump is losing patience. In his view, the Fed is dragging its feet on lowering interest rates—something he believes is essential for the economy and his political agenda. He's even considering replacing Powell this summer. Yet for now, Powell still has the backing of most of his team.

Trump-Appointed Members Shift Tone, While Majority Urges Patience
While most of the 12 voting members of the Federal Open Market Committee (FOMC) prefer to wait for more economic data, two of Trump’s appointees—Michelle Bowman and Christopher Waller—have unexpectedly come out in favor of a rate cut in July.
Bowman in particular shocked markets. Once a strong advocate for higher rates—having even voted against a 0.5% cut last year—her abrupt shift caught many by surprise. Waller echoed her sentiment, saying he also supports a move toward monetary easing. Their remarks pushed the market’s expectations for a July rate cut from 14% to nearly 25%.

Powell and Key Fed Governors Push Back
New York Fed President John Williams was among the first to respond. He said the current rate range of 4.25% to 4.5% remains “entirely appropriate,” stressing the importance of waiting for more data. Other regional Fed leaders followed suit, emphasizing that it's still too early for a move.
Analysts like Kevin Burgett of LHMeyer point out that Bowman and Waller remain outliers. If they vote for a rate cut next month without broader support, it would be the first such split in 32 years.

The Fed Is Divided: Some Want Action, Others Counsel Caution
This internal divide is also reflected in the Fed's projections. Ten voting members support two to three rate cuts this year, while seven prefer to wait until 2026. The divide has become public—and Trump is watching closely.
He may soon announce a replacement for Powell. Potential picks include one of the six remaining Fed governors or an outside candidate, with Adriana Kugler's term ending in January.

Tariff Concerns Deepen the Rift
One major reason Powell is resisting rate cuts is Trump's push for new tariffs. Powell fears these could reignite inflation, undermining the Fed's hard-won progress. Bowman and Waller disagree, saying inflation is falling and that businesses are absorbing the costs without passing them on to consumers.
However, most Fed officials remain skeptical. Williams pointed to a New York Fed survey showing that many companies are passing tariff-related costs directly to customers. Others warn that the impact on prices may not be immediate—especially if businesses stockpiled inventory in anticipation of the tariffs.

Conclusion: Powell Holds the Line – For Now
As the July meeting approaches, the Fed walks a tightrope. Trump demands swift action. Bowman and Waller seem ready. But Powell remains firm—at least until new data suggests otherwise. And for now, the majority of the Fed's board stands with him.

#Fed , #JeromePowell , #FederalReserve , #TRUMP , #USPolitics

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Notice:
,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“

Former U.S. Treasury Secretary Steven Mnuchin shared an optimistic outlook on monetary policy during his appearance on CNBC. He expects the Federal Reserve to cut interest rates by 75 to 100 basis points over the next 12 months, stating that markets have already priced in this scenario.

🔹 Fed Taking a Cautious But Clear Path
Mnuchin praised Fed Chair Jerome Powell’s cautious and patient approach. “Inflation, once considered transitory, has shown lasting effects. Powell recognizes this but also sees that conditions now allow for rate cuts,” Mnuchin explained. He believes the rate reductions will be gradual and are already reflected in asset prices.
If there are no major economic surprises, Mnuchin predicts interest rates could decline by a full percentage point.

🔹 Trump Preparing Trade Deals, Tariff Delays Possible
Mnuchin, who handled financial policy during the Trump administration, also revealed that the former president is preparing to announce new trade agreements. He mentioned ongoing negotiations with countries such as China, India, and Japan and suggested that July’s planned tariff hikes could be postponed if progress is made.
“So far, the imposed tariffs haven’t raised inflation. That supports market expectations for lower interest rates,” he added.

🔹 TikTok Deal Likely Without Full Sale
Mnuchin also addressed the ongoing TikTok situation, predicting a solution that doesn't involve a full sale of the platform. Instead, he foresees the involvement of new investors who would reshape the company’s ownership in cooperation with Chinese parent ByteDance. He mentioned that his own investment interests are currently inactive.

🔹 Bond Yields Unlikely to Fall Below 4%
Mnuchin said it's unlikely that yields on 10-year U.S. Treasury bonds will fall below 4%. A decline to the 4.0–4.25% range is possible, aligning with a scenario of gradual monetary easing without drastic policy shifts.
He also reassured that a significant economic slowdown is not expected, and that markets are already reacting to this outlook.

🔹 Tax Cuts and the Need for Growth
Mnuchin emphasized that a major tax package pending in the Senate will be critical for markets. He strongly supports extending the Trump-era tax cuts, calling them essential for economic health.
While acknowledging that long-term debt and deficits pose a serious challenge, Mnuchin believes that if GDP growth stays around 3%, the situation can be managed without drastic spending cuts. However, if growth slows, budget cuts will become inevitable, he warned.

#Fed , #economy , #usa , #USPolitics , #FederalReserve

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Notice:
,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“

June 26, 2025 — In a landmark move for the U.S. banking sector, the Federal Reserve has confirmed that banks may offer services to cryptocurrency firms, provided they comply with established financial and consumer protection standards. The decision was announced during Fed Chair Jerome Powell’s testimony before the House Financial Services Committee on June 24.

🏦 Regulatory Shift: Reputational Risk Removed

On June 23, the Federal Reserve officially removed “reputational risk” from its bank supervision manual—a change that eliminates a longstanding, subjective barrier to crypto banking. This policy shift means that financial institutions will no longer be penalized or discouraged from serving crypto clients based on vague reputational concerns.

Instead, regulatory focus will now center solely on quantifiable financial, legal, and operational risks. This aligns the Fed’s position with those of the FDIC and the Office of the Comptroller of the Currency (OCC), both of which made similar revisions earlier in 2025.

🔁 Unified Oversight Across Agencies

The updated guidance reflects a more coordinated and transparent regulatory stance among major U.S. banking authorities. Under the new framework:

Banks can choose to work with cryptocurrency firms based on measurable risk factors.
Examiners are no longer permitted to block lawful crypto-related services citing reputational concerns.
Fed examiners will receive updated training to ensure consistent implementation across all supervised institutions.

This unified approach is expected to strengthen confidence among banks exploring digital asset partnerships and services.

💼 Crypto Services on the Rise

With the reputational risk obstacle removed, banks are now positioned to expand into a range of crypto-related offerings, including:

Custody solutions
Crypto payment and settlement infrastructure
Tokenized asset support and advisory services

For years, industry stakeholders criticized the reputational risk standard as arbitrary and overly restrictive. Its removal marks a turning point, offering regulatory clarity that could spur innovation and broader institutional participation in the crypto sector.

⚖️ Fed Emphasizes Strong Risk Management

Despite the policy shift, the Fed reiterated that banks must adhere to strict standards regarding:

Legal compliance
Credit exposure
Liquidity and operational risks

The central bank has not committed to a specific timeline for further crypto-related guidance, but officials stressed that all digital asset activity must be conducted responsibly, with consumer protection and financial stability as top priorities.

📊 Broader Economic Context

Alongside the crypto update, the Fed also commented on macroeconomic conditions. Inflation remains above the 2% target, and while rate cuts are still under consideration, ongoing uncertainty—especially surrounding tariffs and fiscal policy—continues to complicate outlooks.

🧩 Conclusion: A New Era of Crypto-Banking Integration

The Fed’s decision to eliminate reputational risk from its regulatory playbook opens the door for U.S. banks to serve the crypto industry more confidently. With consistent standards across regulatory bodies, banks can now pursue digital asset services without fear of ambiguous enforcement, provided they uphold core financial risk controls.

This regulatory clarity could mark a significant step toward the mainstream integration of cryptocurrencies within the U.S. financial system.

🔗 View Source Tweet from Bitcoin Magazine

#CryptoBanking #FederalReserve #BNB #CryptoIntegration

The U.S. economy is flashing serious warning signs, and the Federal Reserve is under increasing pressure to cut interest rates. Fed Chair Jerome Powell is preparing to testify before Congress this week, as tension builds across markets and political lines.

🔹 Economic Warning: LEI Index Drops Again

According to The Conference Board, the U.S. Leading Economic Index (LEI) fell for the sixth consecutive month in May—this time by 0.1%. It is now 16% below its peak, reaching the lowest level in nine years. The current pace of decline has historically been a reliable indicator of an impending recession.
📉 Over the past 39 months, the LEI has declined in 37—one of the worst streaks on record. Every time something similar has occurred since 1960, a recession has followed.

🔹 Powell Under Fire in Congress

Jerome Powell will testify this week before both chambers of Congress. While these hearings are routine, this time the pressure is anything but ordinary. Powell faces criticism from both sides of the aisle—and even from within the Fed itself.

🔹 Trump-Appointed Fed Officials Call for July Rate Cut

Two key Fed members—Michelle Bowman and Christopher Waller, both appointed by former President Trump—have now publicly called for rate cuts starting in July. Bowman presented her case in Prague, while Waller echoed her stance on CNBC.
Economist Mohamed El-Erian noted: “Political influence is beginning to creep into the FOMC.” He added that the synchronized timing of two Republican-leaning governors advocating a July cut is no coincidence.

🔹 Trump Allies Push for Aggressive Cuts, Powell Holds Steady

While Trump and his inner circle want dramatic cuts of up to two percentage points, Powell and Waller favor a more cautious approach. “I want to start slow,” Waller said. Even the Fed’s latest projections suggest a target rate around 3%, only modestly below current levels.
📊 History shows that cutting rates too quickly can backfire. When the Fed slashed rates by 1% last fall, bond yields actually rose—driven by market fears of rekindled inflation.

🔹 Powell Resignation Rumors Swirl

Bill Pulte, head of the Federal Housing Finance Agency, posted on X that “Powell’s immediate resignation is imminent,” claiming Powell shows “clear political bias” against President Trump. Powell has not responded, but unity within the Fed appears increasingly fractured.

🔹 Pressure from the Left, Too

Senator Elizabeth Warren is also calling for lower rates, though for different reasons than the Republicans. Powell is expected to face tough questioning from both sides during his congressional testimony—Republicans demanding action, and Democrats urging urgency.

#Fed , #JeromePowell , #FederalReserve , #USmarket , #worldnews

Stay one step ahead – follow our profile and stay informed about everything important in the world of cryptocurrencies!
Notice:
,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“

U.S. Federal Reserve Chairman Jerome Powell has officially confirmed that the central bank does not own #bitcoin — and has no intention or authority to buy it in the future.
What Did Powell Say?
Speaking during a recent monetary policy discussion, Chairman Jerome Powell stated:
“We do not own Bitcoin. We are not authorized to own Bitcoin. And we are not seeking such authority.”
This statement clearly outlines the Fed’s institutional boundaries when it comes to crypto assets like $BTC . Unlike ETFs or gold reserves, Bitcoin is not part of the Fed’s mandate under U.S. law.
What Does It Mean for Crypto?
Here’s the context:
The Fed manages the U.S. dollar, interest rates, and monetary stability.It holds traditional assets like U.S. Treasuries and mortgage-backed securities.Bitcoin does not fit into any of these categories.
Even if the Fed wanted to add BTC to its balance sheet, it would require explicit legal approval from Congress — which is currently not under consideration.
No Institutional Buy-In (For Now)
This announcement puts to rest speculation that the Fed could accumulate Bitcoin as a hedge against inflation or global monetary shifts.
However, other U.S. entities like:
BlackRockFidelityU.S.-approved Bitcoin ETFs
...are already making waves in institutional adoption.
The Fed’s neutrality should not be mistaken for anti-Bitcoin sentiment — but rather a legal boundary the institution operates within.
Crypto Market Takeaway
This isn’t bearish news — it’s a realistic reaffirmation of how the monetary system is structured today.
Bitcoin’s rise is being driven by:
Spot ETF inflowsGlobal adoptionHalving cycle narrativesLayer-2 and institutional infrastructure
The Fed sitting out doesn’t slow down crypto’s momentum — it clarifies the landscape for informed investors.
Final Thought
Bitcoin doesn’t need the Fed’s endorsement to thrive.
The decentralized nature of BTC is exactly why it appeals to millions — including those who don’t trust central banks.
This announcement simply means:
No BTC on the Fed’s books. The rest is up to the free market.
Follow CryptoPatel for the latest verified crypto policy updates, market moves, and global adoption insights.
#FederalReserve #CryptoNews #BinanceSquare #MonetaryPolicy $ETH $SEI