Donald Trump Abandons Plans to Fire Jerome Powell — What Will the Impact Be?

Updated

April 24, 2025

Gambar Donald Trump Abandons Plans to Fire Jerome Powell — What Will the Impact Be?

Jakarta, Pintu News – According to a Bloomberg report, President Donald Trump has scrapped plans to end Jerome Powell’s tenure as Federal Reserve (Fed) Chair. In his latest speech, Trump stated that he has “no intention of firing” Jerome Powell despite resistance to lowering interest rates.

These comments come after Trump previously indicated the possibility of Powell’s dismissal, saying that the Fed Chair’s removal “can’t come soon enough” after labeling him a loser.

However, just a week after those comments, Trump changed his stance which would allow Jerome Powell to complete his term. Despite previous statements hinting at dismissal, traders in the US are betting against Powell’s removal at Polymarket.

On the other hand, Powell remained calm amid talk of his possible removal as Fed Chair. Powell argued that the US President is legally not allowed to fire a Fed Chair, a claim that has sparked much legal debate.

Trump’s push for interest rate cuts

Although Trump has ruled out plans to fire Powell, the US President seized the moment to urge an interest rate cut. Donald Trump urged the Fed Chairman to be more flexible in his stance during the inauguration of the new SEC Chairman, Paul Atkins.

“I’d like to see him a little more active in terms of the idea of lowering interest rates,” Trump said. “This is a great time to lower interest rates.”

Trump has warned about an economic slowdown if the Fed refuses to cut interest rates.

According to Donald Trump, the EU has cut interest rates seven times while Powell has yet to act amid an ongoing global tariff war.

Although the Fed has cut rates three times by 2024, Jerome Powell is moving slowly on this, stating the need to be cautious amid Trump’s uncertain trade policies.

Impact on Cryptocurrency Market

If the Federal Reserve complies with Trump’s request, Bitcoin and other cryptocurrencies are expected to see a rise. A cut in interest rates will trigger capital inflows into risky assets like Bitcoin (BTC), while a weak USD will make cryptocurrencies an attractive alternative.

Earlier, crypto markets had already shown a positive response to Donald Trump’s criticism of Fed Chair Jerome Powell. Although the planned dismissal was eventually scrapped, market sentiment improved, with Bitcoin (BTC) briefly trading as high as $93,000-signaling strong optimism from investors and traders, including those active in derivatives markets such as futures trading.

Conclusion

Donald Trump’s decision not to fire Jerome Powell and his push for an interest rate cut demonstrate the complex dynamics between government policy and monetary management by the Federal Reserve.

Despite political pressures, the Fed’s independence in making monetary policy decisions remains a critical aspect in maintaining economic stability. Going forward, the interaction between government policies and Fed decisions will continue to be a point of concern, especially in the context of a changing global economy.

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities have high risk and volatility, always do your own research and use cold cash before investing. All activities of buying and selling bitcoin and other crypto asset investments are the responsibility of the reader.

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