Trump Considers Firing Federal Reserve Chair Powell Amid Tensions

Donald Trump reportedly consulted House Republicans regarding the dismissal of Federal Reserve Chair Jerome Powell on Tuesday. Key figures expressed approval of the potential action.

This potential decision could lead to significant disruption in financial markets, impacting both traditional and cryptocurrency sectors. Observers are concerned about ramifications for U.S. monetary policy stability.

Trump’s Potential Move: Market Disruptions Loom

Donald Trump’s inquiry about dismissing Jerome Powell from his role as Federal Reserve Chair prompted reactions from several House Republicans. Sources indicate Trump hinted at the possibility of action. Legal experts highlight the absence of a clear precedent for such a removal under current U.S. law. However, Trump maintains “cause” as a potential justification.

Market implications are substantial, with risks of a downturn in currency and bond markets being described. Cryptocurrency markets may encounter heightened volatility amid speculative hedging, as fears around U.S. monetary policy grow. Crypto-specific platforms like Polymarket offer predictions and highlight the potential impact on assets such as Bitcoin and Ethereum.

Notable reactions emerged from both the financial sector and political figures. Renowned analyst George Saravelos stated, “If Trump fires the Fed’s Powell, both the currency and the bond markets could collapse.” White House officials have yet to provide a formal legal basis, reflecting the uncertain nature of such a decision.

Crypto Markets Watch: Bitcoin and Ethereum in Focus

Did you know? Historical tensions between U.S. Presidents and Federal Reserve chairs often trigger financial volatility but have not led to actual removal. The current situation revives these historical complexities with potential greater implications for digital currency markets.

Bitcoin (BTC) currently trades at $119,611.52, with a market cap of $2.38 trillion. Its 24-hour trading volume reached approximately $72.90 billion despite a 20.37% decrease. Over the past three months, BTC’s price has appreciated by 41.36%, indicating robust market performance. Data sourced from CoinMarketCap, July 16, 2025.

Insights from the Coincu research team highlight potential regulatory inquiries and shifts in investor sentiment. The elevated volatility may lead to a temporary increase in stablecoin demand and a reallocation of assets. Current geopolitical tensions could act as a catalyst for changes in investment patterns, drawing attention to cryptocurrency’s role as a financial hedge.