Trump Adviser Urges Powell to Resign as Bitcoin Eyes Fed Rate Moves

President Donald Trump’s economic adviser Kevin Hassett has called for former Federal Reserve Chair Jerome Powell to resign from the Fed’s Board of Governors. Hassett’s request follows an internal report that highlighted management issues related to renovations at the Fed’s headquarters in Washington, D.C. Trump has also expressed support for removing Powell from the board, signaling potential shifts in U.S. monetary policy.

Powell’s role remains significant as one of 12 voting members of the Federal Open Market Committee (FOMC), influencing interest rate decisions. If Powell resigns before his term ends, Trump could appoint a replacement, pending Senate approval. The impact on Bitcoin would depend on the new governor’s stance on policy issues, particularly interest rates.

The Federal Reserve recently raised its target rate by 25 basis points to 3.75%-4% on September 16, the first rate hike since 2023. Inflation remains above the Fed’s 2% target, and future rate decisions will consider various economic factors. Bitcoin’s price has rebounded to over $87,000, supported by institutional interest in US spot Bitcoin ETFs, which may help offset the effects of tighter monetary policy.

Lower interest rate expectations could benefit Bitcoin prices by reducing Treasury yields and improving market liquidity. However, Powell’s potential exit alone is unlikely to shift this scenario significantly. The next Fed meeting on October 27-28 will be crucial, as markets reassess rate expectations and Bitcoin traders monitor policy developments.