Trump Demands Powell's Ouster Despite Probe Finding No Wrongdoing

President Donald Trump continues to demand the resignation of Jerome Powell from the Federal Reserve Board despite an internal watchdog finding no wrongdoing in a renovation project that has been used as a basis for criticism. The probe, which was conducted by the Office of Inspector General (OIG), concluded that there was no evidence of criminal activity involving Powell or other officials. However, Trump remains adamant that Powell should leave the board entirely.

The controversy surrounding Powell's tenure on the Fed Board has sparked concerns about the potential erosion of Federal Reserve independence and its impact on market confidence. The perceived threats to the Fed's autonomy could raise regulatory uncertainty for Bitcoin and the broader crypto and DeFi ecosystem, which may have negative implications for adoption and price stability.

Powell's term as Fed chair ended in May, but he still holds a seat on the board until January 2028. According to the Federal Reserve Act, governors can only be removed 'for cause,' not for policy disagreements or other reasons unrelated to their performance. This means that Trump's efforts to oust Powell may ultimately prove unsuccessful.