President Donald Trump has demanded the resignation of Federal Reserve Chair Jerome Powell, accusing him of unwarranted electoral interference and inadequate rate cut actions.
Escalating Conflict with the Fed
During a Cabinet meeting in Washington D.C. in July 2025, Trump called for an investigation into Powell's actions. He expressed dissatisfaction with the Fed chair's interventions in the electoral process and lack of sufficient measures to reduce rates, urging for his resignation.
Powell's Response and Public Reaction
In response to increasing criticism, supported by figures like Bill Pulte and Senator Cynthia Lummis, Powell denied the allegations, labeling reports as 'misleading.' This has created additional tension in the market.
Market Impact and Cryptocurrency
Market forecasts have sharply adjusted, showing a 23% spike in rate cut expectations. Investors, including those in the cryptocurrency space, are concerned about the possible impact of political decisions. Historical data suggests that leadership disputes can trigger economic instability, which could in turn affect assets like BTC and ETH.
The situation surrounding the Fed chair may become a key factor for financial markets, including cryptocurrencies. Investors are advised to monitor Congressional actions and market reactions in the current political climate.
