#TrumpVsPowell

The Potential Impact of Powell's Dismissal on the Economy and Cryptocurrency

If President Trump fires Federal Reserve Chairman Jerome Powell, it would be a significant challenge to the independence of the Fed and could trigger market turmoil. As the first such action in modern American history, it could lead to a decline in investor confidence and exacerbate economic uncertainty in the short term. Economically, Powell's departure could push for more pro-Trump policies, such as looser monetary policy (e.g., lowering interest rates), which would help stimulate economic growth and boost the stock market but could also intensify inflationary pressures. If the new chairman is more hawkish, it could strengthen tightening measures, leading to rising bond yields and an economic slowdown.

For cryptocurrency, especially $ETH (Ethereum), this could have a dual impact. In the short term, market volatility will increase: if the dismissal is seen as a signal of a weakening dollar, $ETH may rise as a safe-haven asset, driving up its price. However, if overall economic uncertainty worsens, risk-averse sentiment may dominate, leading to a short-term pullback in $ETH and other cryptocurrencies. In the long term, this depends on how new policies affect global liquidity and inflation—looser environments typically benefit $ETH's DeFi and NFT ecosystems.

As a trader, I recommend paying attention to the technical aspects of $ETH. Remember, the crypto market is highly correlated, so maintain stop-losses to cope with volatility.