Trump Demands Powell's Immediate Resignation Amid Fed Controversy

President Trump has once again called for the immediate resignation of Federal Reserve Chairman Jerome Powell, echoing his previous demands and adding fuel to the ongoing controversy surrounding Powell's leadership. During a Cabinet meeting in Washington, Trump was questioned about accusations from some Republican lawmakers that Powell had misled Congress regarding renovations at the Fed’s headquarters building. Trump's response was unequivocal: "He should resign immediately."

The president's remarks came amidst a broader critique of Powell's economic policies, particularly his stance on interest rates. Trump has repeatedly expressed his desire for a Fed chair who would lower interest rates, a position that contrasts with Powell's more cautious approach. Powell has urged patience on rate cuts, citing concerns that Trump's tariffs could inflate prices this summer.

The allegations against Powell stem from his testimony before Senate lawmakers last month, where Republican senators questioned him about media reports detailing the expenses and features of the Fed renovation project. Powell defended his statements, asserting that the reports were "misleading and inaccurate in many, many respects." Trump, however, did not delve into the specifics of Powell's testimony but instead shifted the conversation to accuse Powell of lowering interest rates excessively before the November presidential election, suggesting that Powell was attempting to influence the election outcome in favor of Trump's Democratic opponents.

Trump's comments also touched on potential successors to Powell. He mentioned that Treasury Secretary Scott Bessent is among those being considered for the role. Bessent, along with other names such as former Fed governor Kevin Warsh, National Economic Council director Kevin Hassett, former World Bank president David Malpass, and current Fed governor Christopher Waller, has been floated as a possible replacement for Powell when his term expires next May.

The administration is reportedly considering various options, including appointing a new person to the Fed's board of governors to fill a 14-year seat that will open up with the departure of Fed governor Adriana Kugler on January 31. This individual could then be positioned to take over as chair when Powell leaves in May.

Trump's calls for Powell's resignation raise significant questions about the extent to which the president can influence the Federal Reserve's policies and leadership. The controversy surrounding Powell's tenure highlights the delicate balance between political pressure and the independence of the Federal Reserve, an institution crucial for maintaining economic stability.

Bill Pulte, Director of the Federal Housing Finance Agency, called for an investigation into Powell's actions. Pulte describes Powell’s congressional testimony as "deceptive". Federal Reserve policies are criticized by Trump for their financial impact and have stirred market concerns.

Critics argue Powell's stubborn rate policies affect the financial landscape. Interest rate decisions by the Fed typically influence cryptocurrencies, with potential rate cuts signaling market opportunities. The political environment elevates uncertainty in interest rate expectations.

Analyzing past trends, rate policy changes often lead to significant market movements. Cryptocurrencies may see volatility, as has been historically noted during Fed policy adjustments. Price fluctuations in BTC and ETH can occur alongside U.S. monetary policy decisions.