Crypto Soars Amid Rising Calls for Fed Leadership Shake-Up
As Bitcoin surged past $120,000 for the first time over the weekend, the spotlight turned sharply to the U.S. Federal Reserve’s chairman. Jerome Powell, widely seen as hawkish on monetary policy, faces growing pressure from political quarters demanding his resignation or removal.
Political Tensions Heat Up
Powell’s shift from aggressive rate cuts before the 2024 election to a more restrictive stance afterward has drawn ire from President Donald Trump, who publicly criticized Powell’s refusal to lower interest rates further. Trump also condemned a $2.5 billion Fed renovation project, suggesting wastefulness and possible misleading testimony to Congress. This project has triggered scrutiny from the Office of Management and Budget and intensified calls for “regime change” at the Fed.
Potential Shake-Up and Market Implications
Former Fed officials and current economic advisors have voiced support for replacing Powell, citing the Fed’s costly initiatives and policy direction. The possibility that the president could fire Powell “if there’s cause” is under active consideration, signaling a tense political backdrop.
Impact on Crypto and Regulation
While Powell has maintained a neutral stance toward cryptocurrencies—viewing Bitcoin more as a gold competitor than a payment system—his tenure has emphasized clearer regulation, especially around stablecoins and consumer protections. A new Fed chair might bring looser monetary policy and potentially a friendlier regulatory approach, which many in the crypto community would welcome.
As the Fed’s leadership faces unprecedented political pressure, markets and crypto investors watch closely, aware that any shift could reshape monetary policy and regulatory landscapes in the months ahead.
