Trump Pushes for Powell's Ouster Despite Fed Watchdog Clearing
A Federal Reserve watchdog has cleared Jerome Powell of any wrongdoing in an internal investigation into allegations of mismanagement at the central bank's headquarters. However, President Trump still wants him to resign or face lawsuits from the US government.
Powell's term as Fed chair ended in May, but he remains on the board until January 2028 due to a separate term governed by its own rules. The Federal Reserve Act states that governors can only be removed 'for cause', not for policy disagreements with the president.
The ongoing conflict raises concerns about the perceived threats to Federal Reserve independence and potential market confidence, which could impact the price stability of Bitcoin and other cryptocurrencies in the broader crypto and DeFi ecosystem.