Trump’s Draft to Fire Fed Chair Powell Sparks Market Concerns

US President Donald Trump has drafted a letter to remove Federal Reserve Chairman Jerome Powell, according to a report. This potential action has sparked reactions across financial markets.

If successful, Trump’s move could lead to instability in U.S. markets. Financial institutions have already expressed concerns. ©CoinMarketCap reports that this might influence fiat liquidity, impacting crypto markets.

Trump’s Plan to Oust Powell Stirs Economic Instability Concerns

US President Donald Trump has drafted a letter to remove Federal Reserve Chairman Jerome Powell, citing dissatisfaction over interest rates. Powell has faced criticism from Trump, who has repeatedly pressured for rate cuts. The potential removal has incited concerns over Fed independence and could lead to market instability. Trump’s draft letter raises significant questions about the Fed’s future direction. Powell, meanwhile, has defended the Federal Reserve’s independence, maintaining that decisions are based on economic data, not political pressure. Financial markets responded with caution, reflecting fears of potential institutional disruption. Jerome Powell did not comment publicly on his removal, but Deutsche Bank warned of the risk of market collapse if independence is compromised. George Saravelos of Deutsche Bank highlighted systemic risks, emphasizing potential currency and bond market collapses.

As of July 16, 2025, Bitcoin (BTC) trades at $118,698.50, with a market cap of $2.36 trillion, representing 62.53% market dominance. BTC’s value rose 2.01% in the last 24 hours, increasing 40.21% over 90 days, per CoinMarketCap data. Recent political events could impact market trajectories, with potential financial consequences for cryptocurrencies. Historical data show that abrupt political shifts often correspond to short-term volatility in both fiat and crypto markets. Coincu experts suggest greater BTC and ETH market moves may arise from broader political instability, impacting institutional investments.

“I’m very unhappy with what [Powell] is doing… We should be cutting [interest rates].” — Donald Trump, President of the United States

Bitcoin Rallies Amid Political Tensions, Hits $118k Milestone

Did you know? The sudden removal of a Fed chair is unprecedented in modern U.S. history, emphasizing the rare pressures between political leadership and economic governance.

As of July 16, 2025, Bitcoin (BTC) trades at $118,698.50, with a market cap of $2.36 trillion, representing 62.53% market dominance. BTC’s value rose 2.01% in the last 24 hours, increasing 40.21% over 90 days, per CoinMarketCap data.

Recent political events could impact market trajectories, with potential financial consequences for cryptocurrencies. Historical data show that abrupt political shifts often correspond to short-term volatility in both fiat and crypto markets.