Trump Adviser Calls for Powell’s Fed Exit Bitcoin Could Be Affected
President Donald Trump’s economic adviser Kevin Hassett has called for Jerome Powell to step down from the Federal Reserve Board, citing management failures related to the renovation of the Fed’s headquarters. Hassett, appearing on Fox News’ Sunday Morning Futures, stated, "I think that it’s time for him to move on and to respect the independence of the Fed." President Trump also echoed the call for Powell’s resignation following an internal watchdog report.
Powell’s departure would create a vacancy on the seven-member Board of Governors, allowing Trump to nominate a replacement subject to Senate confirmation. Though Powell left his role as Fed chair in May, he remains a voting member of the Federal Open Market Committee (FOMC). His exit could influence Bitcoin’s trajectory, depending on the policy stance of his successor.
Bitcoin has shown resilience despite the Fed’s September rate hike, recovering to over $87,000 supported by spot ETF inflows. However, high Treasury yields continue to pose a challenge. Markets have reduced expectations for an October rate hike following weak September payroll data, but another increase remains possible later this year.
The impact of Powell’s potential departure on Bitcoin would depend on whether his replacement alters interest rate expectations. While Trump has favored lower borrowing costs, current Fed members, including new chair Kevin Warsh, supported the recent rate hike to combat inflation. Bitcoin’s price movements have historically reacted to shifts in Fed policy, highlighting the cryptocurrency’s sensitivity to monetary policy changes.