Trump Calls for Jerome Powell Resign: Will it Save Crypto Market?
Trump Calls Jerome Powell Resign: Crypto Savior or Power Grab Tactic?
On July 9, 2025, U.S. President Donald Trump demanded that Federal Reserve Chair Jerome Powell resign if reports about misleading Congress over costly Fed headquarters renovations are true. During a Cabinet meeting, Trump criticized Powell’s leadership, stating he’s unfit for the job and insisting the Fed should cut interest rates to support the economy.
President Donald Trump demanded that Federal Reserve Chair Jerome Powell resign
Source: X
As per Trump Powell news, the US President is also unhappy with comments blaming tariffs for delaying rate cuts. He recently postponed new tariffs to August 1, accusing Chair of using them as an excuse. "Anybody would be better than J Powell," he said.
The clashes are ongoing, with experts warning that high rates hurt investments and crypto markets. Federal Reserve Chair Jerome has already reduced rates to 4.25%–4.50% but currently shows no intention to cut further.
Will Powell Cut Rates to Keep His Job?
The clash isn’t just about office expenses. It’s about the future of the U.S. economy. President blames him for not cutting interest prices fast enough and says his policies are stopping growth. During the same meeting, he said, “Anybody would be better than J Powell. He’s costing us a fortune because he keeps the rate way up.”
Interestingly, Chair has pushed back, saying that Trump’s own tariff policies are one reason the Fed has been cautious. He explained that trade tariffs can increase prices, leading to inflation. This makes it risky to lower interest rates too soon.
This conflict is at the heart of the interest rates debate. While Trump wants easier money and lower borrowing costs, Jerome has focused on keeping inflation under control. But now, with this new controversy, people are asking: Will Powell cut rates to hold onto his job? Or will Powell resign before he is replaced?
Will Powell Be Replaced? Here’s Who Could Be Next
If Fed Chair steps down or is removed, Who will be the next. According to prediction market Kalshi, Kevin Hassett is leading with a 35% chance of becoming the next Fed Chair. Christopher Waller is close behind with 23%, and Kevin Warsh has 21%. These contenders are known for favoring lower interest rates, which fits Trump’s vision.
Kalshi market prediction for Fed chair
Source: Kalshi
This brings up the big question: Will Powell be replaced, how will that affect not just traditional finance—but the fast-growing crypto market?
Crypto Market Awaits Fed Decision: Cut or Hold?
The crypto world is watching closely. When there are higher interest rates, individuals shun risk assets such as crypto. Therefore, if Chair slashes it, we can see a rush into Bitcoin as well as other altcoins suddenly.
According to the FedWatch Tool, this chart depicts the various probabilities by the target rate of the United States Federal Reserve scheduled for the meeting on 30 July 2025. It has a very strong likelihood (95.3%) that the Fed will not change interest rates from the then-current target range of 425–450 basis points.
A comparatively minuscule amount (4.7%) of the market is expecting it to be lowered to 400–425 basis points. This implies that the market consensus is overwhelming in suggesting that the government will sustain its present monetary policy position in this upcoming meeting. If the Fed holds at 4.25–4.50%, then crypto would suffer.
Rate Cute possibilities
Source: FedWatch Tool
But if he pulls a surprise with a slight cut, Bitcoin can rise 10–30%, according to analysts. Long term, if it decline to 3.75–4.00% by 2025, it could bring the crypto market fresh energy. Increased liquidity, increased investor optimism, and a weaker US dollar could all combine to make digital currencies more costly.
Alternatively, if inflation does not decline and Chair fails to lower it further, crypto markets may either go stale or down. That would align crypto performance with stocks and normal markets.
Conclusion
This drama is not political in itself—it damages the economy and particularly the crypto environment. Whether the tensions lead to Jerome resign, or whether termination becomes real, the decisions coming from the reserve will shape what happens next for digital currencies.
Disclaimer: This article is for informational purposes only and doesn’t provide any financial advice. Do your own research before making any investment.
