In recent weeks, discussions around the possible resignation of Federal Reserve Chair Jerome Powell have intensified amid growing tensions between the Fed and the Trump administration. Economists and investors are closely monitoring the situation as it could significantly impact US monetary policy.
Support for Powell's Resignation Idea
Amid speculation about Powell's possible resignation, William J. Pulte, Chairman of the Board at Fannie Mae and Freddie Mac, expressed support for the idea. In a statement posted on X, Pulte said that Powell’s departure would be 'the right decision for America,' suggesting it could open the door to renewed economic momentum.
Contradictions Between the Fed and Trump's Administration
Tensions between the Fed and the Trump administration have increased as the president insists on significant interest rate cuts to support economic growth. Trump recently cited rising tariffs revenue and a strong economy as reasons the Fed should have slashed rates by at least 3 percentage points, arguing that inflation is cooling faster than expected. However, Powell has resisted such calls, warning that new tariffs could reignite inflation.
Possible Consequences for the Crypto Market
If Powell were to step aside, Trump would likely appoint someone more aligned with his economic philosophy. This would significantly increase the chances of multiple rate cuts before the end of 2025, potentially triggering another wave of inflows into risk assets like Bitcoin and other cryptocurrencies. Investors are watching closely, as a shake-up at the top of the Fed could redefine monetary policy direction and further fuel the ongoing crypto rally.
Discussions about Jerome Powell's possible resignation open up opportunities for significant changes in US economic policy, which could also impact the dynamics of cryptocurrency markets. Further developments in this situation are anticipated.
