Bitcoin News Today: Powell Defies Trump Resignation Demands, Cements Fed's Independence as Bitcoin Rises 22.62%

Federal Reserve Chair Jerome Powell has rebuffed repeated demands from President Donald Trump to resign, reiterating his commitment to maintaining the central bank’s independence amid escalating political tensions. The standoff, centered on Trump’s public pressure for rate cuts and criticisms of Fed operations, has drawn attention to the delicate balance between political influence and institutional autonomy. Powell, whose term concludes in May 2028, has emphasized that the Fed’s decisions are grounded in economic data rather than political agendas, a stance that has garnered both support and scrutiny.

The conflict intensified in July as Trump, during a high-profile visit to the Federal Reserve, renewed calls for lower interest rates and accused Powell of mismanaging the central bank’s responsibilities. Powell countered these claims, fact-checking Trump’s allegations about renovation costs and reaffirming the Fed’s dual mandate of maximum employment and price stability. “The Federal Reserve remains committed to its core mission, not political campaigns,” Powell stated during a public appearance, underscoring the institution’s resolve to resist external pressures [1].

Trump’s criticism has included direct threats of legal action to remove Powell from his position, a move analysts argue would face significant constitutional hurdles given the Fed’s statutory independence and the rigorous confirmation process required for a new chair. Legal experts caution that any attempt to forcibly replace Powell would likely be challenged in court, highlighting the structural safeguards designed to insulate the central bank from executive interference. Despite these protections, Trump’s aggressive rhetoric has raised concerns about the precedent it sets for future administrations, with critics warning that such pressure could erode trust in the Fed’s ability to act in the public interest [2].

The financial markets have largely remained calm in response to the unfolding dispute. While cryptocurrency markets have seen minimal disruption, Bitcoin’s price remained stable at $115,750.42 as of July 25, with a 22.62% gain over 90 days despite a 2.84% dip in the previous 24 hours [3]. U.S. Treasury Secretary Scott Bessent echoed broader support for Powell, stating, “There’s nothing that tells me he should step down right now. He’s been a good public servant,” reinforcing a unified government stance on institutional independence.

Analysts note that the current tensions mirror historical precedents, such as the Nixon administration, where political pressure did not result in leadership changes, underscoring the Fed’s institutional resilience. However, the 2026 election looms as a potential flashpoint, with Trump’s ongoing campaign to influence monetary policy to align with his economic agenda. Powell’s refusal to alter policy decisions under political pressure has been widely interpreted as a defense of the Fed’s credibility, with one official stating, “This is not about politics; it’s about the economy. Any erosion of independence could undermine long-term effectiveness” [3].

As the political and economic landscape evolves, the Fed’s independence remains a focal point for global markets. The central bank’s ability to navigate these pressures without compromising its mandate will be critical in maintaining confidence in its monetary policy framework. Powell’s stance has positioned the Fed as a bulwark against short-term political manipulation, though the broader implications for future administrations remain uncertain.

Sources:

[1] [Powell Fact-Checks Trump on Cost of Fed Renovations](https://www.nytimes.com/live/2025/07/24/us/trump-federal-reserve-powell)

[2] [The Latest: Interest Rates Are Central to Trump's Continuing Feud](https://wtop.com/national/2025/07/the-latest-trump-to-visit-federal-reserve-as-feud-with-its-chair-continues/)

[3] [Trump Will Visit Federal Reserve in Escalation of Campaign](https://www.29news.com/2025/07/24/trump-will-visit-federal-reserve-escalation-campaign-pressure-powell-cut-interest-rates/)