- Trump retains Fed Chair Powell amid political advisories, boosting market confidence.
- Probability of Powell’s removal fell to 13% after Trump’s statements
- U.S. stock futures and crypto markets rallied; Bitcoin market cap surpassed $1.86 trillion.
President Trump confirmed he will not dismiss Federal Reserve Chair Jerome Powell following advisories from his top economic advisors today.
This decision maintains the current monetary policy direction, alleviating concerns in financial markets and supporting U.S. stock and cryptocurrency sectors.
Trump’s Decision Calms Markets, Fuels Crypto Surge
President Donald Trump publicly announced he will not fire Federal Reserve Chair Jerome Powell despite prior discussions and legal considerations to do so. Trump’s decision followed warnings from U.S. Treasury Secretary Steven Besent and Commerce Secretary Howard Lutnick, who highlighted potential ramifications.
The decision resulted in an uptick in market optimism. U.S. stock futures saw positive movements, with Nasdaq, S&P 500, and Dow seeing notable increases. Markets interpreted this as reassurance for macroeconomic stability and policy direction, reflected in cryptocurrency markets with Bitcoin’s market cap surging over $1.86 trillion.
Market observers reacted: the probability of Powell’s removal decreased significantly on prediction markets like Polymarket. Richard Heart, founder of Hex, termed a U.S. SEC lawsuit withdrawal as a “triumph for crypto, open-source software, and freedom of speech.” Heart pointed out that this time the SEC’s lawsuit even targeted the “software code itself.”
Analyzing the Impact on Stocks and Cryptocurrencies
Did you know? Historically, Federal Reserve Chairs have rarely faced dismissal threats from U.S. Presidents. The last significant tensions occurred during Richard Nixon’s presidency, drawing parallels to market reactions seen today.
Bitcoin (BTC) stands at a price of $93,793.49, with a market cap of $1.86 trillion, maintaining a market dominance of 63.36%. The 24-hour trading volume reached $57.49 billion, showing a 47.49% change as of April 23, 2025, according to CoinMarketCap. Recently, it saw price changes of 3.97% over 24 hours, 11.71% in 7 days, and 7.11% over 30 days.
According to the Coincu research team, Trump’s reassurances could maintain policy continuity, crucial for ongoing economic recovery. This stability may foster sustained growth across financial markets, as seen with positive shifts in equities and crypto asset valuations.
Source: https://coincu.com/333887-trump-retains-fed-chair-powell/