Donald Trump has publicly called for the removal of Federal Reserve Chair Jerome Powell, citing dissatisfaction with economic policies, amid recent developments involving a Department of Justice inquiry as of January 2026.
The call to remove Powell could impact the Federal Reserveโs future policy direction, with Trumpโs stance potentially affecting market stability, evidenced by fluctuations in Bitcoin and Ethereum valuations following his statements.
President Donald J. Trump plans to remove Jerome Powell as Federal Reserve Chair amidst tensions and controversy over a Department of Justice (DOJ) inquiry. This inquiry attempted to probe Powellโs leadership without leading to any charges.
The decision follows Trumpโs reelection and his public support for cryptocurrency. Recently, Trumpโs platform, World Liberty Financial, raised $500M. Investigations led by Attorney General Merrick Garland ended without charges, signifying a failed inquiry.
Crypto Markets React to Trumpโs Federal Reserve Moves
Trumpโs actions caused fluctuations in major cryptocurrencies, with BTC experiencing a 3.2% decline. Widespread reactions suggest potential shifts in regulatory practices as experts question the Federal Reserveโs independence amidst political pressures.
The situation highlights potential financial stakes, impacting crypto markets with Bitcoin and Ethereum prices dropping. This has drawn historical comparisons with past Fed interventions, predicting volatile phases and potential shifts in crypto investments.
โTrump firing Powell is bullish AF for BTCโFed gone means free money printing resumes. DOJ clowns backfired hard. $100k incoming.โ โ Arthur Hayes, Founder, Maelstrom
Trumpโs Fed Involvement Echoes Nixonโs 1970s Interference
The ongoing Trump-Powell saga resembles Trumpโs past criticisms in 2018-2019, which resulted in significant cryptocurrency market drops. Similar historical scenarios have unfolded, such as with Nixonโs Fed interference in the 1970s.
Kanalcoin experts predict a bullish trend for cryptocurrencies as Trumpโs moves may lead to increased market instability. They suggest that Bitcoinโs classically deflationary nature might result in a new peak amidst policy changes.
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