US President Donald Trump has warned that he will fire Federal Reserve Chairman Jerome Powell if the latter does not resign until May. The statement sparked reactions across international markets as Powell’s exit could lead to an easing of monetary policy.
Trump threatens to fire Federal Reserve Chairman Powell
There has been a dispute between the two prominent figures in the world of politics for months. The dispute stems from Powell’s reluctance to cut Fed interest rates despite Trump’s repeated request for such a move.
For context, Powell’s term is set to end on May 15. However, he plans to keep his position at the Fed until his successor, Trump nominee Kevin Warsh, receives Senate confirmation.
When asked what the course of action would be if Powell refused to leave office, Trump said: “Then I would have to fire him.” According to Fox Business interviewThe US President added: “I refrained from firing him. I wanted to fire him, but I hate being controversial.” He also indicated that he finds the Fed Chairman incompetent.
This statement comes at a time when Senator Thom Tillis threatened to block Warsh’s nomination to head the Federal Reserve Bank by the Senate Banking Committee. If he takes such a step, Powell has indicated that he will remain in his position. To justify his position, Powell said: “This is what the law calls for. This is what we have done on several occasions.”
Impact on the crypto industry
The cryptocurrency industry could benefit if Warsh takes over as Federal Reserve Chairman. He recently disclosed assets worth over $100 million with a major company Share in cryptoAnd Polymarket, SpaceX and AI companies.
Moreover, since Trump has consistently called for lower interest rates, Warsh may consider easing policy amid lower-than-expected expectations. US Producer Price Index inflation data. This could in turn benefit the cryptocurrency market as lower rates generally shift attention to higher-risk assets like Bitcoin and other cryptocurrencies. Moreover, a pro-crypto Fed Chairman could also influence better regulation in the industry.
