Political Conflict Escalates: Trump Demands Immediate Dismissal of Federal Reserve Chair Powell

On April 17, 2025, Trump publicly stated that Powell should be 'immediately relieved' of his duties, accusing him of being 'slow to respond and incompetent' regarding inflation, interest rate policies, and market reactions. He called the Federal Reserve's latest policy statement a 'mess' and criticized its failure to cut rates promptly after energy and food prices fell.

Meanwhile, Trump is suing the Supreme Court, aiming to gain power to dismiss leaders of independent agencies, including Powell. If this action is approved, it will set a historical precedent for presidential intervention in monetary policy.

💰 Trump's Economic Proposition: High Tariffs + Low Interest Rates

Since April, Trump has announced tariffs of 10% to 49% on imported goods from 185 countries, with tariffs on Chinese goods reaching as high as 145%. He claims that the U.S. is generating billions of dollars in revenue each week through tariffs, providing a fiscal buffer for rate cuts.

His logic is: 'Since U.S. inflation has fallen and tariffs are generating strong revenue, interest rates should be significantly cut to stimulate the economy.' He praised the European Central Bank for 'cutting rates 7 times within six months,' while criticizing the Federal Reserve for 'slow actions that put the U.S. at a disadvantage in global competition.'

📉 Powell Responds: Fed Independence Must Not Be Interfered With

Powell firmly responded, emphasizing that the Federal Reserve is an independent agency, and the president has no authority to dismiss its chair. He stated he would serve his term until May 2026. He also warned that hasty rate cuts could fuel inflation, exacerbate supply chain risks, and weaken market confidence.

He insists on the principle of 'data-driven decision making' and warns that political interference may undermine long-term market trust in the Federal Reserve.

📊 Market Reaction: Cautiously Optimistic but Hidden Risks

After Powell's statement, the dollar index slightly retreated, and U.S. stocks rose by 0.2% to 1.6%. Investors are optimistically expecting or pricing in rate cuts in the short term, but concerns about the independence of the Federal Reserve are also deepening.

The next Federal Reserve meeting is scheduled for May 6-7, during which the market will closely watch whether there will indeed be a 2% rate cut or if Powell will continue to maintain a hawkish tone to 'depoliticize' matters.

Potential in the Crypto Market: BTC $150,000? ETH $5,000?

If rate cuts materialize, or if the Federal Reserve loses policy independence, confidence in the dollar may waver, and capital will once again seek safe-haven assets—cryptocurrencies will become the top choice:

📈 Bitcoin ($BTC ) Expected to Hit $150,000

📈 Ethereum ($ETH ) Expected to Break Through $5,000

📈 Solana (#SOL ) May Reach $500

Especially Bitcoin, long viewed as 'digital gold' against the rampant issuance of fiat currency and policy uncertainty, is very likely to start a new wave of upward momentum in this context.

✅ Conclusion:

New Opportunities Behind the Power Struggle

The current dispute between Trump and Powell is not only a disagreement over economic policy but may also rewrite the Federal Reserve's independence and the operational model of the U.S. monetary system.

✅ If the Federal Reserve yields to political pressure or cuts rates prematurely, the crypto market may experience an unprecedented explosive period.

❗️ However, if political interference spirals out of control, financial markets may enter a period of high volatility and increased uncertainty.

For investors, this is both a risk and a significant opportunity. Keep a close eye on the May FOMC meeting and the Supreme Court ruling dynamics, as they may determine the true ignition point of the crypto bull market.