Trump Adviser Pushes for Powell’s Fed Exit Amid Bitcoin Rate Watch

President Donald Trump’s economic adviser, Kevin Hassett, has called for former Federal Reserve Chair Jerome Powell to step down from the Fed’s Board of Governors. This demand follows an internal report highlighting management issues with the Fed’s Washington, D.C., office renovations. Trump has also expressed support for removing Powell, adding to existing tensions between the former chair and the administration.

Powell’s role remains crucial as one of the 12 voting members of the Federal Open Market Committee (FOMC), influencing interest rate policy. 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 monetary policy, particularly interest rates.

The Federal Reserve recently raised its target rate to 3.75%-4% on September 16, the first hike since 2023. Inflation remains above the Fed’s 2% target, with future rate decisions hinging on economic data. Bitcoin has shown resilience, rebounding to over $87,000 amid growing institutional interest in US spot Bitcoin ETFs.

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