XRP News Today: Powell's Potential Resignation Sparks Market Uncertainty

Federal Reserve Chair Jerome Powell is reportedly considering resignation, sparking widespread attention across financial and political circles. The speculation follows increasing scrutiny over a $2.5 billion renovation of the Federal Reserve’s Washington, D.C. headquarters, an initiative many have labeled the “Palace of Versailles.” Critics, including members of Congress and President Donald Trump, accuse Powell of misleading lawmakers by downplaying the extravagant features of the project. The backlash has led to a formal investigation by the Office of Management and Budget.

On July 8, President Trump publicly called for Powell’s immediate resignation, blaming him for failing to guide interest rates responsibly and for mismanaging the renovation’s public disclosure. Adding fuel to the fire, Bill Pulte, director of Fannie Mae and Freddie Mac, posted on X: “I’m encouraged by reports that Jerome Powell is considering resigning… I think this will be the right decision for America, and the economy will boom.”

Although Powell’s term runs through May 2026, internal sources suggest that the Chair is under immense stress and may step down voluntarily. Despite the growing speculation, no official resignation has been announced, and White House insiders maintain that a transition is not currently in motion. Names being floated as potential successors include Treasury Secretary Scott Bessent, former Fed Governor Kevin Warsh, and economist Kevin Hassett. However, any leadership change at the Fed, especially under pressure, could be seen as politically motivated and risk shaking investor confidence in the central bank’s independence.

From a financial perspective, a Powell resignation could signal a pivotal shift in monetary policy. His departure might open the door for a more dovish Federal Reserve inclined toward cutting interest rates sooner than previously anticipated. Such a shift would inject additional liquidity into the financial system, traditionally a strong catalyst for risk assets, including cryptocurrencies. For XRP, this potential liquidity boost could translate into increased upward momentum. Historically, XRP has performed well in low-rate, dollar-weakening environments. During a similar period of monetary softening in April 2025, XRP surged 4% in one week to $2.12.

If Powell exits and his successor pivots to a looser monetary stance, XRP and other cryptocurrencies could experience significant rallies driven by increased capital inflows. However, a chaotic or politically charged resignation could temporarily dampen market enthusiasm, especially if it introduces policy uncertainty. As the report continues to gain traction, investors across traditional and digital markets are watching closely. Whether Powell stays or steps down, the narrative is already influencing expectations and could be setting the stage for a new phase in the crypto rally.