Trump Considers Dismissing Fed Chair Jerome Powell – Coincu

US President Donald Trump is contemplating the removal of Federal Reserve Chair Jerome Powell, a move that has garnered significant attention from financial markets.

The possible dismissal of Powell reflects ongoing policy disagreements, particularly regarding interest rates, which have been a point of contention since Powell’s appointment in 2017.

Political Pressure Threatens Central Bank Independence

President Trump is at the center of discussions about replacing Jerome Powell as Federal Reserve Chair. This move follows repeated criticisms by Trump concerning Powell’s handling of interest rates. Christopher Waller, a current Fed Governor, was mentioned as a potential replacement. Powell has maintained the Fed’s independence despite rising political pressure.

If Powell is removed, it could lead to a shift in the Fed’s approach to monetary policy. This move raises concerns about central bank independence, which remains a cornerstone for investor confidence. The yield on US Treasuries increased, indicating investor apprehension regarding potential instability.

Financial markets reacted with heightened volatility and risk-off sentiment. Trump expressed his discontent through social media, stating:

“Powell’s termination cannot come fast enough.”

This has prompted discussions on the underlying implications for economic policy and global market stability.

Historical Context, Price Data, and Expert Insights

Did you know? In 1935, the Supreme Court ruled that independent agency heads can only be dismissed “for cause,” a precedent now under review, potentially affecting the Federal Reserve’s autonomy.

Bitcoin’s current price is $84,443.50, with a market cap of about $1.68 trillion. Dominating 62.89% of the market, Bitcoin faces a trading volume dip of 25.30% in 24 hours. This data, last updated on April 18, 2025, is attributed to CoinMarketCap.

The Coincu research team notes that replacing Powell with a more dovish Fed Chair could decrease borrowing costs, potentially boosting economic activity. However, it raises questions about long-term institutional credibility and investor confidence in a stable policy stance.