U.S. President Donald Trump has stepped back from previous threats to remove Federal Reserve Chairman Jerome Powell from office. Despite his past criticism, Trump now says he has “no intention” of firing Powell.
This marks a notable change in tone, given that Trump had recently labeled Powell a “loser” and pushed for his removal. The president now allows Powell to serve his term, but remains vocal about his dissatisfaction with the Fed’s interest rate policies.
According to Bloomberg, Trump repeated his call for rate cuts during the new SEC Chair Paul Atkins swearing-in. He argued that now is the “perfect time” to lower interest rates and warned that the U.S. economy could face slower growth without timely intervention.
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Crypto Markets Respond as Trump Eases Pressure on Powell
While Trump has eased up on threats against Powell, his push for interest rate cuts has intensified. This renewed pressure has impacted traditional financial markets and the growing cryptocurrency space.
According to CoinMarketCap data, Bitcoin exceeded $93,000 after recent market developments. The market growth indicates that cryptocurrency investors see Trump’s position as reasonable for digital assets, considering the current economic conditions of reduced interest rates and dollar weakness.
The market activity recorded on Polymarket indicates investor optimism about Powell’s remaining as Federal Reserve Chair. Data from trading platforms suggests traders expect a stable economic environment despite political controversies since they place bets on Powell’s continued position.
Federal Reserve Chairman Jerome Powell maintains his strategy of conducting monetary policy through steady data-based methods. Federal Reserve officials made three interest rate adjustments in 2024, along with Powell’s unwillingness to swiftly execute any additional changes.
Most legal specialists concur that Presidents cannot dismiss Federal Reserve Chairs from their positions without compelling valid reasons. The limited options available to Trump forced him to focus exclusively on shaping policy rather than replacing Fed Chair Jerome Powell.
Trump has used public statements to draw attention to the EU’s aggressive rate-cutting approach when comparing macroeconomic policies. According to Trump, the Fed’s present speed is damaging U.S. competitiveness by proceeding at too slow a rate.
Conclusion
Trump’s shift in strategy indicates a political recalibration as he maintains economic pressure while stepping back from confrontation. With market reactions favoring Powell’s continued leadership, the coming months may hinge on whether the Fed adjusts its pace or sticks to its cautious path.
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