Trump Courts Push to Remove Fed Figure as Bitcoin Eyes Rate Drama

Trump has petitioned a federal appeals court to allow the dismissal of U.S. Federal Reserve Governor Christopher Waller, citing alleged involvement in mortgage fraud. The request follows ongoing legal scrutiny into certain financial activities tied to Waller, with Trump’s legal team arguing for procedural grounds to dismiss the charges. The move highlights intensifying political pressure on the Federal Reserve and raises questions about how the agency will respond, particularly as it approaches a pivotal rate decision this fall.

Separately, the U.S. Federal Reserve faces broader scrutiny over its regulatory role in financial markets. The upcoming rate decision, expected in mid-September, is seen as a critical moment that could influence market volatility and investor sentiment. Analysts note that the Fed’s response to inflation, economic growth, and financial stability concerns will shape the trajectory of both traditional and digital asset markets.

In the cryptocurrency space, Bitcoin and other digital assets are closely watching the Fed’s decision. According to recent analysis from Coinbase, the market is likely to see a stronger rally in the early part of the fourth quarter of 2025. This optimism is underpinned by favorable macroeconomic conditions, improving regulatory clarity, and increased institutional adoption. The firm cites “resilient liquidity” and a “supportive macro backdrop” as key factors driving this outlook.

Grayscale, another major player in the digital asset ecosystem, has also pointed to macroeconomic shifts as a tailwind for crypto. It highlights the growing skepticism toward the U.S. government's ability to maintain low inflation in the face of rising public debt and uncontrolled deficit spending. Investors who lose confidence in the dollar are increasingly turning to alternative stores of value, with Bitcoin positioned to benefit.

The broader financial landscape is also shifting. In a separate but related development, U.S. President Donald Trump has ramped up pressure on pharmaceutical companies to lower drug prices in the United States. He has extended a 60-day deadline for companies to respond to his demands, with threats of government intervention if no progress is made. The effort reflects a broader frustration with what Trump describes as “abusive pricing practices” and a desire to align U.S. prices with international benchmarks. This move has raised questions about the potential for regulatory interference in the Fed’s operations and the broader financial sector.

As the political and financial pressures converge, the upcoming Federal Reserve rate decision will be closely watched by market participants. The outcome could have far-reaching implications for both traditional and digital asset markets, with Bitcoin and other cryptocurrencies positioned to react sharply to any surprise developments.