The tension between former President Donald Trump and the current Federal Reserve Chairman, Jerome Powell, has reached a new critical point. According to recent leaks from the White House, Trump is considering dismissing Powell, whom he appointed in 2018, for allegedly 'politicizing the central bank' and refusing to lower interest rates.
Although it is almost legally impossible for the Executive to remove the head of the Fed without serious cause, Trump has reiterated that 'if I want him to go, he will go very quickly.' The implications of this statement are profound: it calls into question the principle of independence of U.S. monetary policy.
Why is it serious?
The stability of the dollar and the credibility of the global financial system largely depend on the Federal Reserve acting autonomously. If this independence is perceived as threatened, global markets could react strongly, including:
- Fall in the value of the dollar
- Increase in the price of gold and Bitcoin
- Distrust in Treasury bonds
- Migration of capital towards cryptocurrencies and alternative assets
Bitcoin as a safe haven
In times of institutional uncertainty, the crypto market tends to strengthen. Movements towards Bitcoin as 'digital gold' are already being observed, especially in anticipation of a new cycle of monetary easing forced by political pressure.
Will Powell fall?
Despite the threats, experts agree that the removal of Powell would require a long and complex legal process. However, the mere fact of raising it has already had an impact:
'It's not just about the economy. It's about political power. And in this case, whether markets are governed by fundamentals or tweets,' says Katherine Hsu, analyst at the Washington Economic Forum.
The current scenario is loaded with institutional uncertainty. For investors in crypto, it can represent both a red alert and a golden opportunity. The market is becoming politicized… and $BTC could be the winner
