President Trump’s public demand for Powell’s resignation has ignited fears of a brewing crisis at the Fed, sending crypto investors into high alert.
By Parth Dubey
Editor Julia Sakovich
Updated
2 mins read
President Donald Trump has called for Fed Chair Jerome Powell’s immediate resignation, sparking fears of a broader financial storm, the effects of which could seep into the digital asset space.
🚨 BREAKING: President Trump DEMANDS Jerome Powell "RESIGN IMMEDIATELY" as Fed Chair and says Congress should INVESTIGATE him.
"Too late! He's always late! But he wasn't late with Biden before the election, he was cutting [rates] like crazy."
"He was trying to get them in." pic.twitter.com/7kFjoRCXei
— Eric Daugherty (@EricLDaugh) July 8, 2025
Trump has long criticized Powell for being “too slow” to cut interest rates, but his latest demand, pushed via social media and press conferences, establishes a new level of confrontation.
He accused Powell of favoring the Biden administration with rate cuts and now dragging his feet despite clear signs of easing inflation.
Trump’s comments come amid growing political scrutiny of Powell’s leadership, including calls for a congressional investigation over potentially misleading Senate testimony regarding a $2.5 billion Fed headquarters renovation.
The US President claims that Powell’s reluctance to lower interest rates has “cost the US economy dearly.”
Trump has also floated potential replacements who share his deregulatory and low-interest-rate ethos, such as Michelle Bowman and Kevin Hassett, names that have raised eyebrows among economists concerned about Fed independence.
🚨 BREAKING: President Trump just went off on "low IQ" "terrible" Fed Chair Jerome Powell.
"I think he's a very stupid person, actually."
"For YEARS we're gonna be paying for him! […] We're gonna end up paying 2 points or 3 points more [on the debt!] 3 points would be $900… pic.twitter.com/iDVzaOeBqf
— Eric Daugherty (@EricLDaugh) June 25, 2025
Crypto markets, already in a state of high sensitivity, are now bracing for a volatile month. Bitcoin BTC $111 500 24h volatility: 2.4% Market cap: $2.22 T Vol. 24h: $36.56 B , stuck between $107,000 and $110,000, is waiting on signals from both the July 9 Fed minutes release and the CPI data due July 15.
Speculation of a rate cut, despite a strong June jobs report, has gained some traction thanks to Truflation data showing inflation falling below 1.7%.
According to Powell, Trump’s tariffs are partially responsible for holding back interest rate cuts, something the President is seemingly doubling down on with a proposed 10% tariff on BRICS nations.
Notably, a stronger US dollar could harm BTC’s appeal as an inflation hedge. Yet at the same time, the increasing politicization of the Fed might boost investor interest in digital assets as a safeguard against economic instability.
Market expectations currently show a 0% chance of a rate cut in July, but 61% of investors foresee a potential cut in September, as per a Reuters report.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
A crypto journalist with over 5 years of experience in the industry, Parth has worked with major media outlets in the crypto and finance world, gathering experience and expertise in the space after surviving bear and bull markets over the years. Parth is also an author of 4 self-published books.
