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How Could Trump's Threat to Powell Impact Bitcoin?
President Donald Trump reignited criticism of Federal Reserve Chair Jerome Powell, blasting him for failing to lower interest rates and suggesting he should be removed from his position. This renewed friction has sparked speculation that some investors may turn to Bitcoin as a hedge, according to Tim Delhaes of Grindery.
Another commentator highlighted that the incident underscores the urgent need for apolitical, well-defined cryptocurrency regulations.
Following the criticism, Bitcoin (BTC) rose slightly, trading above $84,000 on Friday. The rally came after Trump took to Truth Social to slam Powell as being "always late," pressing him to follow the European Central Bank's lead, which recently cut rates by 25 basis points. Trump argued that U.S. inflation has dropped significantly and that Powell should “certainly lower [rates] now.”
Trump escalated the rhetoric further, saying Powell’s “termination cannot come fast enough.” Speaking to reporters, he added, “If I want him out, he’ll be out of there real fast, believe me.”
The threat of Powell’s potential removal has raised alarms among financial analysts. Senator Elizabeth Warren warned that such a move could destabilize markets. “If Chairman Powell can be fired by the President, it will crash U.S. markets,” she said during remarks at the New York Stock Exchange. “Markets rely on major institutions operating independently of politics.”
