🚨 In a dramatic escalation, Donald Trump is calling for the removal of Fed Chair Jerome Powell — setting off a showdown that could reshape U.S. monetary policy and send shockwaves through global markets.
Here’s what’s really happening behind closed doors at the White House:
Trump’s Latest Strike: Fire the Fed Chair
♦️ On April 17, 2025, Trump lashed out publicly, calling Powell “too late and wrong”
♦️ He demanded Powell’s immediate removal, blaming him for failing to cut interest rates
♦️ Trump wants a “pro-crypto” replacement who will accelerate monetary easing
Powell's Recent Moves: Holding the Line on Inflation
♦️ At the January 2025 FOMC meeting, the Fed held rates at 4.25%–4.5%
♦️ That ended a streak of three consecutive rate cuts from late 2024
♦️ Reason? Sticky inflation and a still-strong labor market
Markets React: Panic and Safe Havens
♦️ On April 21, markets dropped sharply:
– S&P 500: -2.7%
– Nasdaq: -3.1%
– Dow: -2.6%
♦️ Meanwhile, Gold soared past $3,400, as investors rushed to safety
The Inflation Wildcard: Tariffs on China
♦️ Trump recently imposed a 145% tariff on Chinese goods
♦️ Powell warned that such tariffs could destabilize prices and hurt long-term growth
♦️ The Fed is stuck between political pressure and economic signals
The Legal Reality: Can Trump Fire Powell?
♦️ Trump appointed Powell in 2018, but Biden reappointed him in 2022
♦️ Powell’s term runs until 2026 and the law protects Fed chairs from being fired without cause
♦️ Legal experts agree: firing a Fed Chair for policy differences would be unprecedented
Why This Matters for Crypto and Investors
♦️ Trump wants a Fed chief who supports crypto adoption and aggressive rate cuts
♦️ Removing Powell would undermine the Fed’s independence and risk market instability
♦️ If successful, a pro-crypto Fed could accelerate bullish sentiment in digital assets
What Happens Next?
♦️ Powell likely won’t cut rates in the short term — he won’t want to look like he’s caving to Trump
♦️ But the Fed’s credibility may erode if political attacks continue
♦️ This battle could reshape the relationship between the White House and central banking for decades
Conclusion:
Whether or not Powell survives this storm, one thing is clear — the outcome of this fight will directly impact markets, interest rates, and possibly the future of crypto regulation in the U.S.