The conflict between Federal Reserve Chair Jerome Powell and former President Donald Trump has resurfaced as the tariff policies of recent months have significantly impacted the U.S. economy. This article examines how this conflict may reflect on the cryptocurrency market.
Reasons for the Conflict
The Powell-Trump conflict is not new. Powell consistently refused to prioritize Trump's interests over his economic recommendations, maintaining high interest rates to control inflation. Following the imposition of tariffs on trading on April 2, 2025, the situation in the stock markets worsened, further straining relations.
The Situation Between Powell and Trump
Trump, dissatisfied with Powell's stance, expresses a desire to remove him via the Supreme Court. This could pose a threat to the independence of the Federal Reserve. Powell, on the other hand, asserts that he has no intention of stepping down until the end of his term in May 2026.
Impact on the Cryptocurrency Market
Some experts believe Powell's potential resignation could lead to lower interest rates, favorably affecting the cryptocurrency market. However, the uncertainty and actions aimed at changing Fed leadership raise concerns among investors. Trump may consider a more pro-crypto candidate to replace Powell, which will also have market implications.
The conflict between Jerome Powell and Donald Trump raises important questions about the independence of financial institutions and their response to political pressure. Despite potential benefits for the cryptocurrency market, there are risks of instability and changes in economic policy.
