Trump’s Pressure on Fed Raises Volatility Concerns – Coincu

In April 2025, U.S. President Donald Trump intensified pressure on Federal Reserve Chairman Jerome Powell to lower interest rates, with threats of dismissal if ignored.

Analysts, including those from Goldman Sachs, predict market volatility if the Federal Reserve’s independence is compromised.

Trump’s Demands on Fed and Goldman’s Volatility Warning

President Trump has been intensifying his demands, urging the Federal Reserve to lower interest rates. His warnings to Chairman Jerome Powell have raised the potential of Powell’s dismissal. Goldman Sachs warned that such political interference carries considerable risks. The Federal Reserve’s ability to conduct independent monetary policy could be at stake, leading to uncertainty among investors. Analysts at Goldman Sachs have voiced concerns. They warned that breaches of central bank independence historically result in market instability, drawing attention to the Fed’s pivotal role. Government officials fear for the Fed’s credibility, with Treasury yields showing increased volatility. Goldman Sachs analysts highlight risks, linking political interference with economic forecasts, suggesting possible repercussions on GDP growth and inflation.

Bitcoin (BTC) recently traded at $84,582.99 with a market cap of formatNumber(1.68 trillion, 2). BTC’s 24-hour volume decreased by 22.05% to $20.73 billion. Despite recent volatility, BTC’s price rose 0.22% over 24 hours, as reported by CoinMarketCap at 09:08 UTC on April 18, 2025.

Coincu researchers note potential outcomes if Fed leadership changes occur. Expect increased volatility, particularly for cryptos, where safe-haven appeal intensifies amidst central bank uncertainty. “Central bank independence is a myth when political survival is at stake. Watch Bitcoin when trust in the Fed evaporates.” – Arthur Hayes, Co-Founder of BitMEX. Preserving policy autonomy is crucial to stabilize markets and maintain economic growth.

Central Bank Independence and Historical Precedents

Did you know? The 1970s Nixon-Burns episode, involving similar political pressure on the Federal Reserve, led to “stagflation.” Experts widely cite this precedent as a reason why central bank independence remains critical today.

Bitcoin (BTC) recently traded at $84,582.99 with a market cap of formatNumber(1.68 trillion, 2). BTC’s 24-hour volume decreased by 22.05% to $20.73 billion. Despite recent volatility, BTC’s price rose 0.22% over 24 hours, as reported by CoinMarketCap at 09:08 UTC on April 18, 2025.

Coincu researchers note potential outcomes if Fed leadership changes occur. Expect increased volatility, particularly for cryptos, where safe-haven appeal intensifies amidst central bank uncertainty.