Trump Considers Fed Chair Replacement, Markets Watch Closely – Coincu

Donald Trump has privately considered firing Federal Reserve Chair Jerome Powell, warning markets of potential instability.

The potential dismissal of Powell, with Kevin Warsh as a replacement, could unsettle markets already wary of Fed’s independence.

Trump Triggers Uncertainty with Fed Leadership Change Talks

Donald Trump has reportedly been contemplating the dismissal of Federal Reserve Chair Jerome Powell for several months, potentially affecting Powell’s term completion. Kevin Warsh is mentioned as a possible successor, yet Warsh suggests maintaining current leadership.

Altering Fed leadership could induce market fluctuations due to perceived threats to its independence. Discussion on nominating Warsh implies potential strategic shifts in monetary policy, fueling uncertainty among investors.

Kevin Warsh, Former Fed Governor, – “advised against firing Powell and believed the Fed chairman should be allowed to complete his term without interruption” [1].

Bitcoin Stabilizes as Fed Uncertainty Looms

Did you know? Since the Federal Reserve’s establishment in 1913, no sitting Chair has been prematurely removed from their position. Any such event can introduce broad systemic uncertainty and impact both traditional and digital financial markets.

Bitcoin, with a price of $85,172.29, holds a market cap of $1.69 trillion with dominance at 62.95%, according to CoinMarketCap. Recent 24-hour volume reached $13.44 billion, marking a 34.81% decrease alongside a slight 0.74% price increase, reflecting ongoing market caution.

The Coincu research team highlights potential market volatility if Trump’s move progresses, possibly impacting USD currency stability and prompting increased crypto asset hedging. Historical reliance on Fed policy steadiness suggests potential risks in governance transition approaches.