Trump Reportedly Considers Firing Federal Reserve Chairman Powell

U.S. President Donald Trump is reportedly considering the removal of Federal Reserve Chairman Jerome Powell, as stated by White House officials on July 16, 2025. A definitive timeline for the decision has not been set.

The consideration to dismiss Powell is significant as it impacts financial market stability and regulatory outlook. It has already caused unease in U.S. and cryptocurrency markets, with potential effects on interest rates and inflation expectations.

Trump’s Potential Move Causes Market Turmoil

In a meeting with House Republicans, President Trump shared a draft firing letter regarding Jerome Powell, implying potential changes in Fed leadership. Despite this, Trump publicly described the likelihood of Powell’s dismissal as ‘highly unlikely’ unless justified by fraud allegations. According to CBS News, discussions with lawmakers have been ongoing, illustrating this sentiment.

The speculation around Powell’s position has caused market fluctuations, notably affecting U.S. dollar value and Treasury yields. Concerns over Fed independence could increase inflation worries. The topic also intertwines with cryptocurrency regulation, as discussed with lawmakers involved.

Reactions from financial and crypto markets have been immediate. There is also a noticeable lack of official statements from Powell or Federal Reserve channels. Market observers are awaiting further clarity on potential actions by the administration.

Cryptocurrency Markets Brace for Federal Reserve Shake-Up

Did you know? In 2018, Trump’s criticism of Fed policies, including interest rate increases, led to Bitcoin’s higher price volatility, reflecting market sensitivity to monetary policy shifts.

According to CoinMarketCap, Bitcoin’s current price stands at $119,407.87, a significant marker in recent trading activities. The leading cryptocurrency’s market cap is valued at $2.38 trillion, with a 24-hour trading volume of $72.09 billion, experiencing a 23.92% decrease. Price fluctuations of 2.00% over the past day and 40.45% over three months underscore volatile market conditions.

Further analysis by Coincu Research indicates that if Powell were to be removed, it could lead to increased volatility in cryptocurrency markets. Given historical trends, Bitcoin and Ethereum prices might react sharply, with broader implications for market stability. Regulatory changes or uncertainties could exacerbate this volatility, affecting trader strategies globally.