Trump Vows to Fire Fed Chair Powell If He Refuses to Resign

U.S. President Donald Trump has warned that he will fire Fed Chair Jerome Powell if the latter doesn’t resign till May. The statement sparked reactions throughout international markets as Powell’s exit may lead to an easing monetary policy.

Trump Threatens To Fire Fed Chair Powell

The two prominent personalities in the political world have engaged in a spat since months. The dispute stems from Powell’s reluctance to cut Federal Reserve interest rates despite Trump repeatedly requesting for such a move.

For context, Powell’s tenure is set to expire on May 15. However, he plans to hold his Fed position until his successor, Trump nominee Kevin Warsh, gets the Senate approval.

When asked about what would be the course of action if Powell refuses to leave office, Trump said, “Then I’ll have to fire him.” According to a Fox Business interview, the U.S. President added, “I’ve held back firing him. I’ve wanted to fire him, but I hate to be controversial.” He also noted that he finds the Fed Chairman to be incompetent.

The statement comes as Senator Thom Tillis has threatened to block Warsh’s nomination as the Fed Chair by the Senate Banking Committee. In case he makes such a move, Powell has indicated that he’ll remain in his position. To justify his stance, Powell said, “That’s what the law calls for. That’s what we’ve done on several occasions.”

Impact For Crypto Industry

The crypto industry could benefit if Warsh takes office as the Federal Reserve Chairman. Recently, he disclosed over $100 million in assets with major stake in crypto, Polymarket, SpaceX, and AI companies.

Moreover, as Trump has consistently called for rate cuts, Warsh might consider easing the policy amid lower-than-expected US PPI inflation data. It could, in turn, benefit the crypto market as lower rates generally shift attention to risk-on assets like Bitcoin and other cryptocurrencies. Furthermore, a pro-crypto Fed Chair could also influence better regulation in the industry.