Donald Trump is no longer hiding his intentions. According to a senior White House official quoted by CNBC and Bloomberg, the American president is “likely” about to fire Jerome Powell, the current chairman of the Federal Reserve. An unprecedented, explosive decision that could have devastating effects on the markets.
A Tense Meeting at the White House
Tuesday evening, in the Oval Office, Trump reportedly asked a group of Republican lawmakers if they supported Powell’s dismissal. The consensus? Total approval. The president, energized, then reportedly stated that he was “likely to do it soon“.
The atmosphere was already tense: a few hours earlier, these same Republicans had blocked a vote on crypto legislation supported by Trump. A way for the president to test his political support before launching a direct attack on the Fed.
An Open War Against Powell
For months, Trump and his inner circle have been criticizing Powell’s monetary policy. The goal? To pressure the central bank to lower interest rates. The latest target: the costly renovations of the Fed’s headquarters in Washington, which Trump now uses as a pretext to mention a “legitimate cause” for dismissal.
But legally, the ground is slippery. A recent Supreme Court ruling has clearly stated that the President of the United States cannot dismiss a Fed chairman at will. Never before in the country’s history has a head of state attempted such a power move.
Between Political Support and Public Denials
Despite the statements from the White House, several key figures in the administration are downplaying the situation. Treasury Secretary Scott Bessent told Bloomberg that he did not expect such a decision. The same sentiment came from Representative French Hill, chairman of the Financial Services Committee:
I don’t see Trump doing it.
But behind the scenes, the atmosphere is different. Trump has reportedly already drafted a dismissal letter. And according to Republican representative Anna Paulina Luna, the announcement is imminent: “I have a very reliable source. I’m 99% sure” she tweeted.
What Impacts on the Markets… and on Crypto?
A firing of Powell would send shockwaves through the financial markets. The Fed is supposed to be independent, and any attempt at political control would shake global confidence in America’s economic stability.
For crypto investors, this political tension could paradoxically offer an opportunity. A weakened Fed, a contested dollar, manipulated interest rates: all arguments strengthening the pro-Bitcoin narrative, especially since digital gold is finally able to compete with physical gold, becoming a true safe haven asset.
But beware: political instability remains the worst fuel for the markets… especially when it involves the world’s leading central bank.
