Highlights
- Donald Trump reportedly plans to fire Jerome Powell as the Fed Chair hesitates on cutting rates.
- Bitcoin touched $120,000 on the news.
- A fed rate cut is bullish for Bitcoin and other crypto prices, so Powell leaving the Fed is a positive.
- Trump however denied reports that he is planning to sack Powell, saying its unlikely.
In a massive development, US President Donald Trump reportedly plans to fire Fed Chair Jerome Powell soon. The BTC price quickly jumped in response to this news, as it could pave the way for an imminent Fed rate cut. However, the president has since denied the reports of him firing the Fed Chair.
BTC Price Jumps As Trump Could Show Powell The Door Soon
TradingView data shows that the flagship crypto spiked to as high as $19,000. This came following a Bloomberg report that Trump is likely to fire Powell soon, according to a White House official.
The BTC price surged from a low of around $18,400 to $19,000 and is now holding above the psychological $119,000 level as it looks to reclaim the $120,000 level. The report about Powell’s is bullish for crypto prices as the president could appoint someone who would cut rates, a move which would inject more liquidity into the crypto market.
Trump has been pushing for a Fed rate cut for a while now and recently urged the US Central Bank to make a 300-basis-point interest rate cut. According to the Bloomberg report, the president also discussed his plans with congressional Republicans, who voiced support for this move.
Interestingly, this development comes just a day after US Treasury Secretary Scott Bessent said that the process to pick Powell’s successor has begun. Polymarket data shows that White House Adviser Kevin Hassett is currently leading the race to replace Powell.
Hassett has already stated that the Fed has plenty of room to cut rates and could move to cut rates if he becomes the next Fed Chair. As such, the BTC price looks to already be pricing in the possibility of this happening.
Trump Denies Plans To Fire Powell
Trump denied reports that he was planning to fire the Fed Chair, stating that it is very unlikely unless Powell has to leave for fraud. However, he admitted that he had spoken with Republicans about the possibility of that happening. The BTC price dropped below $119,000 following the president’s statement.
Whether or not Trump can fire Powell remains another issue that has been up for debate. A Supreme Court ruling in June clarified that the Fed Chair is legally protected and cannot be fired by the president.
However, there is the likelihood that Trump will seize on Powell’s alleged overspending on a renovation project at the US Central Bank. US FHFA Chairman William Pulte has already called for an investigation into the Fed Chair. He also recently stated that Powell was reportedly considering resignation.
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