Hassett Calls for Powell's Exit, Could Bitcoin Benefit?

Kevin Hassett, Donald Trump's chief economic adviser, has called for Jerome Powell to leave the Federal Reserve board, citing management failures tied to the central bank's headquarters renovation. The move could potentially benefit Bitcoin, but only if Powell's eventual replacement changes expectations for interest rates. Powell remains a member of the Federal Open Market Committee and a voter on Fed interest rate decisions, despite leaving the chair role in May.

Hassett's comments came on Fox News' Sunday Morning Futures, where he said, 'I think it's time for him to move on and to respect the independence of the Fed.' Trump has also weighed in, calling for Powell to be 'forced to resign from the Board' following the report. Powell's continued presence on the Board of Governors means he retains a vote on monetary policy.

The Fed raised interest rates for the first time in three years in September, but markets have since cut expectations for another rate hike in October. Bitcoin has recovered from the rate hike, supported by renewed spot ETF inflows and corporate purchases. However, high Treasury yields remain a source of pressure on the cryptocurrency.

Any effect on Bitcoin would depend on the new governor's monetary policy stance and how their addition changes voting within the FOMC. Trump has repeatedly favored lower borrowing costs, but the rest of the FOMC backed the September rate increase as inflation remained above the central bank's 2% target.