White House Discusses Authority Over Federal Reserve Leadership

President Trump could potentially remove Federal Reserve Chairman Jerome Powell if evidence supports the accusation of excessive costs in the Fed’s Washington headquarters renovation.

The statement by White House economic adviser Kevin Hassett suggests action depends on the Fed’s response to this issue.

White House Weighs Powell’s Future Amid Cost Allegations

Kevin Hassett, economic adviser, mentioned that President Trump might dismiss Federal Reserve Chairman Jerome Powell if allegations regarding excessive renovation costs prove true. The White House is considering options depending on the Fed’s response to the cost concerns at its Washington D.C. headquarters.

Renovation costs at the Federal Reserve’s headquarters have become a focal point, with allegations that the Fed bears significant responsibility for high expenses. Trump has repeatedly criticized Powell for not reducing interest rates, adding complexity to this financial and operational scenario.

Market reactions remain muted as no direct action or concrete governmental policy changes have been enacted. No formal statements have come from key figures like Powell or the U.S. government, leaving traditional and crypto markets unaffected by these potential leadership tensions.

Cryptocurrency Markets Stable Despite Speculation on Fed Chair

Did you know? Historically, political disputes over Fed leadership have resulted in short-term USD and market volatility, particularly influencing safe-haven assets. Such scenarios have periodically impacted BTC and gold prices whenever uncertainty loomed over U.S. monetary policy.

Bitcoin (BTC) currently trades at $118,701.01, with a market cap of $2.36 trillion and a 63.66% dominance, according to CoinMarketCap. Recent price changes show a 1.04% increase over 24 hours and 40.38% over 90 days. Recent trading volume witnessed a 15.71% decrease, with $43.50 billion in transactions.

Experts at Coincu indicate potential regulatory impacts if politicization of the Fed’s role increases. Historically, such events create temporary volatility in crypto markets, but only if official actions or confirmed disruptions occur. Adherence to established monetary policy is crucial for maintaining market stability.