Donald Trump has publicly called for the removal of Federal Reserve Chair Jerome Powell, citing dissatisfaction with economic policies. This call comes amidst recent developments involving a Department of Justice inquiry as of January 2026.
The call to remove Powell could impact the Federal Reserve's future policy direction. Trump's stance potentially affects market stability, evidenced by fluctuations in Bitcoin and Ethereum valuations following his statements.
President Donald J. Trump plans to remove Jerome Powell as Federal Reserve Chair amidst tensions and controversy over a Department of Justice (DOJ) inquiry. This inquiry attempted to probe Powell's leadership without leading to any charges.
The decision follows Trump's reelection and his public support for cryptocurrency. Recently, Trump's platform, World Liberty Financial, raised $500 million. Investigations led by Attorney General Merrick Garland ended without charges, signifying a failed inquiry.
Crypto Markets React to Trump's Federal Reserve Moves
Trump’s actions caused fluctuations in major cryptocurrencies, with BTC experiencing a 3.2% decline. Widespread reactions suggest potential shifts in regulatory practices as experts question the Federal Reserve's independence amidst political pressures.
The situation highlights potential financial stakes, impacting crypto markets with Bitcoin and Ethereum prices dropping. This has drawn historical comparisons with past Fed interventions, predicting volatile phases and potential shifts in crypto investments.
"Trump firing Powell is bullish AF for BTC—Fed gone means free money printing resumes. DOJ clowns backfired hard. $100k incoming." - Arthur Hayes, Founder, Maelstrom
Trump's Fed Involvement Echoes Nixon's 1970s Interference
The ongoing Trump-Powell saga resembles Trump's past criticisms in 2018-2019, which resulted in significant cryptocurrency market drops. Similar historical scenarios have unfolded, such as with Nixon's Fed interference in the 1970s.
Kanalcoin experts predict a bullish trend for cryptocurrencies as Trump’s moves may lead to increased market instability. They suggest that Bitcoin's classically deflationary nature might result in a new peak amidst policy changes.