Trump May Dismiss Powell Over Fed HQ Costs

Kevin Hassett, White House economic adviser, stated on July 13, 2025, that President Trump could consider dismissing Federal Reserve Chair Jerome Powell over purported renovation cost overruns at the Fed’s headquarters.

This potential removal centers on the administration’s concerns about fiscal management within major financial institutions, possibly affecting macroeconomic confidence.

Trump’s Consideration of Dismissing Fed Chair Powell

Kevin Hassett has highlighted White House considerations for Federal Reserve leadership changes, specifically targeting Jerome Powell. This follows alleged $700 billion cost overruns on the Fed’s Washington HQ renovation, involving President Trump’s possible intervention.

The leadership shift suggests potential volatility in U.S. financial markets due to uncertainties surrounding central banking policies. The situation underscores fiscal discipline concerns amid speculative macroeconomic impacts, though no immediate on-chain changes are evident.

Any decision by Trump to try to fire Powell over what the Trump administration calls a $700 billion cost overrun is going to depend a lot on the answers that we get to the questions that Russ Vought sent to the Fed.

Past Tensions Highlighted Amid Current Developments

Did you know? Similar past tensions between Trump and Powell in 2018–2019 over policy directions led to temporary market uncertainty without groundbreaking impacts on primary cryptocurrencies like Bitcoin or Ethereum.

Bitcoin (BTC) currently trades at $118,874.15 with a market cap of $2.36 trillion, according to CoinMarketCap. Dominating 63.60% of the market, BTC shows a 1.35% increase in 24 hours and a notable 41.25% rise over 90 days, reflecting potential market resilience.

Experts suggest potential risks for U.S. economic policy if Fed independence is compromised. Broad financial impacts may arise, influencing digital currencies indirectly. The Coincu research team notes that such leadership debates could shift investor confidence, affecting market dynamics and asset valuation strategies.