Trump Adviser Pushes for Powell’s Resignation Amid Bitcoin Rate Sensitivity

Donald Trump’s chief economic adviser, Kevin Hassett, has called for former Federal Reserve Chair Jerome Powell to step down from the central bank’s board. The push follows an internal report that identified management issues related to the renovation of the Fed’s Washington 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 has also demanded Powell’s resignation, continuing his long-standing criticism of the Fed’s policies.

Powell’s departure could influence Bitcoin’s trajectory, as he remains a voting member of the Federal Open Market Committee (FOMC). If Powell resigns, Trump could nominate a replacement, subject to Senate approval. The impact on Bitcoin would depend on the new governor’s stance on interest rates, which are a key factor in the cryptocurrency’s performance.

Bitcoin has shown sensitivity to Fed policy shifts this year. After the FOMC’s September rate hike, Bitcoin initially struggled but later recovered, climbing past $87,000. This recovery was driven by spot Bitcoin ETF demand and corporate purchases. However, risks remain, as Treasury yields and market expectations for future rate hikes could still pressure Bitcoin.

Recent comments from Fed officials, including Vice Chair Philip Jefferson and New York Fed President John Williams, suggest a potential pause in rate hikes. Markets have reduced the likelihood of an October rate increase to around 18%, but another hike before year-end remains possible. Bitcoin’s price has fluctuated in response to these shifting expectations, highlighting its correlation with Fed policy.