Trump Adviser Pushes for Powell’s Resignation Amid Fed Policy Debate

Donald Trump’s chief economic adviser, Kevin Hassett, has called for Jerome Powell to step down from the Federal Reserve’s board, reigniting debates over the central bank’s future direction. Hassett’s remarks on Fox News came after an internal report uncovered management issues related to the Fed’s headquarters renovation. Trump himself has also pushed for Powell’s resignation, continuing his long-standing criticism of the Fed’s interest rate policies.

The situation matters for Bitcoin because Powell remains a voting member of the Federal Open Market Committee (FOMC). If he resigns, Trump could nominate a replacement, potentially altering the Fed’s policy stance. However, any impact on Bitcoin would depend more on the new member’s views on interest rates than on Powell’s departure alone.

Bitcoin has shown sensitivity to Fed policy shifts this year, initially struggling after the September rate hike but later recovering as spot Bitcoin ETF demand surged. The cryptocurrency briefly surpassed $87,000 in early October after weaker-than-expected jobs data reduced expectations of another rate increase. However, Treasury yields remain high, posing a challenge for Bitcoin’s further gains.

Fed officials have signaled mixed views on future rate hikes, with some suggesting caution while others still see the need for tightening. The next Fed meeting in late October will be a key test for Bitcoin, as markets weigh the balance between inflation concerns and economic slowdown signals.