- Main event, leadership changes, market impact, financial shifts, or expert insights.
- Trump calls for Fed Chair replacement.
- Potential dovish Fed implications.
Donald Trump’s recent call for Jerome Powell’s resignation follows criticisms of the Fed’s current monetary policy. Trump suggested the potential for a change in leadership as Powell’s term nears its expected expiration in May 2026.
Trump, who initially appointed Powell, remains dissatisfied with the Fed’s cautious stance on interest rates. He claims this restricts economic growth, voicing his dissatisfaction during a press conference after a NATO summit.
The market reacted immediately to speculation about a possible leadership change at the Federal Reserve. US Treasury yields fell slightly, while the US Dollar Index weakened due to anticipation of a shift towards easier monetary policy.
A potential policy shift towards lower interest rates could impact sectors such as cryptocurrency and technology. Historically, lower rates have increased investment appetites for risk assets like Bitcoin and Ethereum.
Powell recently warned lawmakers that Trump’s proposed tariffs might cause price increases. Despite Trump’s pressures, Powell stated the Fed’s intention to maintain current interest rates to manage inflation.
Historically, external pressures on the Federal Reserve often influence market sentiments. A more dovish Fed approach may boost cryptocurrency valuations, aligning with trends where lower interest rates support risk-on asset flows like Bitcoin.
I know within three or four people who I’m going to pick. I mean he goes out pretty soon, fortunately, because I think he’s terrible.
