Trump’s Call for Powell’s Resignation Shakes Crypto Markets

• Trump’s push to oust Powell threatens Fed independence and rattles financial markets.
• Crypto faces volatility as Trump’s strong-dollar stance collides with Fed policy shifts.
• Tariff threats and Fed turmoil may drive investors toward decentralized crypto assets.

President Donald Trump has launched a direct public assault on the independence of the Federal Reserve, demanding the immediate resignation of Chair Jerome Powell. The unprecedented demand has sent a jolt of uncertainty through financial markets, including the already volatile crypto sector. 

Trump criticized Powell accusing him for deliberately delaying interest rate cuts and acting favorably toward the previous administration. These renewed attacks, paired with Trump’s aggressive economic policies, now mark a turning point for how monetary policy will affect digital assets.

Trump’s Direct Challenge to the Fed’s Independence

Trump’s dissatisfaction with Powell is not new, but his urgency this time is unprecedented. He claims Powell’s hesitancy to cut interest rates has “cost the U.S. economy dearly.” 

At the same time, Trump emphasized the need for a Fed chair who aligns more closely with his economic approach. This includes favoring lower rates and supporting a strong U.S. dollar through strict trade policies.

The president revealed he is considering multiple candidates to replace Powell. These include Scott Bessent, Kevin Hassett, Michelle Bowman, and others with strong ideological alignment. 

While Bessent downplayed interest in the position, his loyalty and economic experience keep him in the conversation. Bowman, meanwhile, represents a regulatory shift and has previously advocated for rate cuts, appealing to Trump’s deregulatory mindset.

Related: Trump’s Search to Replace Jerome Powell Is Reportedly Down to These ‘Two Kevins’

What This Means for the Crypto Market

The crypto market is now bracing for heightened volatility. Trump’s proposed 10% tariff on BRICS nations, combined with his strong-dollar rhetoric, raises the stakes for crypto investors. 

Stronger dollar could push crypto prices down by reducing its appeal as an inflation hedge. However, uncertainty surrounding the Fed’s independence may drive some investors toward decentralized assets like Bitcoin.

Related: In Major Policy Clarification, Fed Chair Says Banks Are ‘Free to Engage’ With Crypto

Moreover, if Powell steps down and is replaced by a more dovish or politically motivated figure, it could disrupt the Fed’s policy credibility. That disruption could prompt traditional investors to diversify into cryptocurrencies as a hedge against perceived instability. The crypto sector often thrives in times of institutional uncertainty, and this situation is no exception.

Broader Economic Impact Looms

Trump’s insistence on tariffs and strong-dollar policy could pressure global markets and reconfigure trade relationships. His comments on tariffs exceeding 60% on certain imports suggest escalating protectionism. 

This, combined with political tension at the Fed, might lead to unpredictable policy changes. Consequently, investors both traditional and crypto-focused are bracing for turbulent times.

With Powell’s term officially running until 2026, any forced resignation could provoke legal and political battles. Regardless of the outcome, Trump’s approach is reshaping the intersection of monetary policy and digital finance in real time.