- Pulte supports Powell’s resignation, says economy will benefit greatly.
- Trump urges Fed to cut rates amid strong market performance.
- Possible Fed shake-up may boost crypto and tech stock rally.
Federal Reserve Chair Jerome Powell is reportedly considering resignation, a move that has drawn support from influential voices in the financial sector. William J. Pulte, Chairman of the Board at Fannie Mae and Freddie Mac, publicly expressed approval of Powell’s possible exit.
According to a statement posted on his verified X account, Pulte said he is “encouraged” by the reports. He continued by saying that stepping down as Powell would be doing America a great favor because he could ensure the economy heals with greater speed.
The current action comes as tensions between Trump and Powell run high. Their differences have been accelerated by their differing opinions on interest rate policy and its economic growth effect. Trump has kept insisting that the Fed reduce interest rates by three percentage points.
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Trump highlighted new highs in technology and crypto markets on his TruthSocial site. He said the Federal Reserve needs to act fast to reduce interest rates in view of these encouraging signs.
However, Powell has warned about impulsive rate cuts. He says relief on tariffs may lead to inflation and a weak dollar, and policy should not be relaxed too soon. That has resulted in people speculating that the chair is not in tandem with the economic policy of the current administration.
Fed Policy Shift Could Accelerate Market Momentum
Should Powell resign, Trump would have the opportunity to appoint a Fed chair who is more aligned with his vision. This may lead to more rapid cut rates to stimulate the market sooner rather than later, towards the close of 2025.
Such a shift would only be advantageous to the crypto market, which is already gaining momentum. The reduced interest would probably attract additional capital towards higher-risk assets such as Digital currencies.
Analysts believe a Trump-aligned Fed could also lead to more consistent economic messaging. This would not only accommodate wider financial confidence but also support the administration’s expansion agenda.
As support builds for Powell’s departure and Trump pushes for immediate policy changes, the future direction of U.S. monetary policy hangs in the balance. Markets are now bracing for potential shifts that could influence economic outcomes nationwide.
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