Trump denies the plans to fire Jerome Powell: Will cryptography markets increase or break?
The rumor around whether President Donald Trump plans to say goodbye to the president of the Federal Reserve, Jerome Powell, is more than a political talk: it is a possible shock wave in financial markets, particularly the cryptocurrency space already volatile. As rumors spread and follow the retractions, investors are wondering: if Trump really eliminates Powell, will cryptography markets recover or trigger a devastating accident?
Rumors that Trump will shoot Powell Spark Market Turbulence
Initially they distributed the reports that President Trump had shown a draft letter to the Republicans of the House of Representatives who indicated that it was “probably” that he proceeded with the elimination of Powell from his position as president of the Federal Reserve, requesting comments from the legislators about the measure. The reports circulated for the first time in private informative sessions, they sent tremors immediately through financial circles, which raised concerns about the independence of the Central Bank of the United States.
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The markets reacted sharply, with bond yields that experienced volatility, the US dollar seeing a quick fall and risk assets, including cryptocurrencies, arising speculation that a possible shot would force the Fed to adopt more flexible monetary policies to stabilize market confidence.
However, in a conflicting turn, Kobeissi’s letter reported X (previously Twitter) that these rumors were false, stating that “Trump Powell’s dismissal reports are not true”, while suggesting that Powell is under an un specified investigation. The lack of clarity has only fed more speculation, leaving merchants and institutional investors who deal with uncertainty.
Can a president of the United States say goodbye to the FED chair?
According to the current law, the President cannot dismiss the president of the Federal Reserve simply for policy disagreements. The elimination would require to prove “cause”, as misconduct or abandonment of duty, criteria not related to disputes over the interest rates policy.
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Despite the legal limitations, Trump has previously expressed frustrations about Powell’s refusal at lower interest rates aggressively, arguing that high rates are suffocating economic growth and harming US competitiveness. The reports indicate that Trump had submitted opinions of several Republican legislators about the possible elimination of Powell, and some reported that they supported the idea.
This context of political pressure and volatility fed by the rumor has amplified the uncertainty of the market, with analysts warning that such discussions, even if they do not materialize, could undermine confidence in the independence of the Federal Reserve.
The cryptographic market increases in response, but for how long?
The cryptographic market, always sensitive to macroeconomic changes, immediately responded to rumors. According to Coinmarketcap data:
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Bitcoin (BTC) It increased by 2%, quoting around $ 119,000, near its previous resistance levels.
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Ethereum (eth) increased 9%, reaching $ 3,292.54 in the middle of an increase in negotiation volumes.
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XRP It rose 3%, approaching $ 2.99 as merchants rotated capital to Altcoins.
This ascending movement reflects the interpretation of the market that Powell’s elimination could force Fed to loosen monetary policy to stabilize markets, a scenario seen as optimistic for risk assets such as cryptocurrencies.
However, the superior analyst Brian Krassenstein issued a marked warning: “If the Republicans want to increase the interest rates, say goodbye to the president of the Federal Reserve is the way to get there. The confidence in the Treasury bonds of the Fed and the United States would collapse, which would lead to higher rates, not lower.”
Its evaluation underlines a critical paradox: although immediate reactions can trigger a cryptographic rally, the longest implications could lead to a market collapse if the confidence of investors in the United States monetary system is eroded.
What would happen if Trump shot Powell?
If Trump followed the elimination of Powell, he would represent a historical and unprecedented movement. Such decision could create:
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A crisis of trust: Investors can see that the Federal Reserve is vulnerable to political interference, which leads to the capital flight of US bonds and shares.
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Volatility in the dollar: A weakening dollar could temporarily boost cryptography prices as investors protect against currency devaluation.
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Rate walk pressure: Ironically, instead of leading lower rates, a crisis of trust could force the highest yields as the government struggles to attract buyers of their debt, affecting liquidity in the markets.
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Long -term damage to financial credibility: The independence of the Federal Reserve has been a cornerstone of American economic stability, and undermine it could damage the country’s position in global markets.
For the cryptographic industry, while Bitcoin and Altcoins often join the fears of inflation and loose monetary policy, systemic instability could lead to a risk environment where even digital assets are sold to increase liquidity during panic in the broader market.
What this means for cryptographic investors now
Despite denial, rumors have injected new volatility in cryptographic markets, coinciding with broader macroeconomic catalysts, including the cooling of the inflation data of the United States and discussions on cryptographic regulation during crypto week.
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Analysts advise caution during such uncertain periods. The current cryptographic rally could quickly reverse if rumors become a true political battle, or if the Fed responds with defensive monetary measures to protect its credibility.
In addition, with the next economic data releases and the possible signals of the Federal Reserve about tariff policies, cryptography merchants must prepare for acute changes, focusing on technical levels and risk management instead of depending solely on speculative holders.
The biggest image: the long -term role of the crypto in the midst of political uncertainty
The incident also highlights a broader tendency: cryptocurrencies such as bitcoin look more and more as hedges against monetary instability and political interference in central banking. If the independence of the Fed ever compromised genuinely, it could accelerate interest in decentralized assets that operate outside government control.
However, cryptographic markets are not immune to broader liquidity shocks. If the confidence in the economy of the United States hesitates, all risk assets, including cryptocurrencies, could face significant volatility.
Conclusion: Calm before the storm or a purchase opportunity?
The current increase in cryptography, driven by rumors about Trump and Powell, may seem short -term optimistic. Even so, it could mask deeper systemic risks if political tensions intensify.
While Trump team denies immediate plans to eliminate Powell, mere discussion has demonstrated how fragile market can be and how closely cryptographic markets are intertwined with traditional finances.
For investors, this moment requires surveillance. Monitor the macroeconomic indicators, the federal reserve statements and credible news sources to stay at the forefront. Diversification and disciplined risk management remain essential to navigate this uncertain landscape.
As cryptographic markets continue to react to all political holders and inflation impressions, merchants should ask: is this other temporal rally or the precursor to a larger change in financial systems worldwide?
Anyway, the encryption market is looking, waiting and ready to react.
Writer
@Ellena
Ellena is an experienced cryptographic writer who loves to explore the intersection of blockchain technology and financial markets. She regularly provides information about the latest trends and innovations in the currency space.
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