Trump Powell Fight Escalates as Resignation Demands Intensify

Trump Powell Fight Sparks Debate Over Fed Rate Cut Before FOMC Meeting

In a big political twist, President has said that the head of the U.S. Federal Reserve, Jerome Powell should resign right away as per the Kobeissie letter's X post. This adds more heat to the ongoing Trump Powell Fight, a battle that’s been going on for years over how interest rates should be handled in the U.S.

Source: The Kobeissie Letter

Why Is Trump Pushing for Powell’s Exit?

The President says he is keeping interest rates way too high, which is hurting the economy. He believes that at these high rates, the government can’t even refinance its debt properly, and that the chairman also knows it. 

He added to the Tweet that, the head of the FHFA also said Congress should investigate his actions.

The President has made it clear he wants interest rates cut down to 1%. He even wrote a handwritten note to Fed Chair, posting it on social media, saying the U.S. is losing “hundreds of billions” because of tight money policies. According to him, he is ignoring reality and refusing to take action.

Trump Powell Fight Over Interest Rates

This Trump Powell Fight goes back a long way. Even before Trump took office, he warned that the country had no money left. After becoming president, he clashed with Fed chair many times, calling him slow and saying running the Federal Reserve is “one of the easiest jobs.”

Recently at the June 18 FOMC meeting , the Fed decided to keep interest rates steady again, holding them between 4.25% and 4.5%. Many on Wall Street hoped for a cut, but the chairman stood firm. 

He is of the opinion that Tariffs uncertainty don’t allow him to cut rates immediately. In fact, instead of giving in to pressure, he shared a meme online of a calm meerkat to show he’s not worried.

Could Powell Be Replaced?

The President isn’t just complaining. Behind the scenes, he’s looking to replace the chairman before his term ends in 2026. 

• He’s already talking to possible replacements like Kevin Warsh, Kevin Hassett, and Christopher Waller. 

• If he does replace Powell, it could lead to big changes in how interest rates are handled.

• Many experts worry that this could harm the independence of the Federal Reserve. 

• The decisions of the central bank are not supposed to be politically based but they should be made through use of information. 

• However, with the president having his way, the scenario may alter the future functionality of the Fed.

How This Affects Crypto?

The Trump Powell Fight could also shake up the crypto market. If Trump's strategy brings rate cuts, then Bitcoin and other cryptocurrencies might be beneficial. Lower interest rates tend to result in more money being invested in fluctuating assets such as crypto.

Currently, investors anticipate that they may reduce rate in the second half of this year. However, if he has to step down and be replaced by someone who favors rapid cuts, then crypto prices could soar. 

Alternatively, the current uncertainty of Tariffs may make investors nervous in the near term. Now the crypto market cap stands at $3.36 Trillion with an increase of 3.00% in the last 24 hours. Bitcoin is trading at $108,998 with an increase of 2.61% in the last day, while Ethereum is trading at $2568 with an increase of 5.62% as per the CoinMarketCap.Source: CoinMarketCap

All Eyes on the July 30th Fed Meeting

The next big moment in this Trump Powell Fight is the upcoming FOMC meeting on July 30th. 

That’s when the Fed could decide whether to finally cut interest rates or keep them high. As per the Fed watch tool, only 25.8% of the people have voted that the Fed will reduce the rate. 

Source: Fed Watch Tool

Many traders, hoping for signs that rate cuts are coming. If the Fed cut rate, it could calm markets and boost crypto. But if Federal Reserve holds steady again, the pressure from the president is likely to grow even stronger. 

Final Thoughts 

The Trump Powell Fight is not just a political drama, it is a major clash over money, power, and the future of the economy. And its impact could reach everywhere from interest rate to crypto market prices in the coming months.