Trump Threatens to Fire Fed Chair as Crypto Traders Wait for FOMO

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Trump Threatens to Fire Fed Chair as Crypto Traders Wait for FOMO

In response to Federal Reserve Chairman Jerome Powell’s criticism of trade tariffs and his prediction of severe economic repercussions, Donald Trump has countered his remarks.

Trump took a confrontational approach on social networks, labeling Powell “Jerome, who’s too late,” and hinting at potential termination, thereby questioning the autonomy of the Federal Reserve.

Trump made it clear to reporters during a White House gathering on April 17, as reported by USA Today, that he was not content with him. In no uncertain terms, Trump indicated that if he decided to remove him, it would be done swiftly, and he emphasized his confidence in this statement.

As an analyst, I would rephrase that statement as follows: “I believe the Federal Reserve Chair, Powell, should have reduced interest rates earlier, akin to the European Central Bank’s approach. Given the current circumstances, it is crucial that he lowers them now. I eagerly await his term of office to conclude.

As a financial analyst, I’m sharing the latest development: President Trump has expressed his viewpoint, asserting that Federal Reserve Chair Powell is engaging in political maneuvering. He believes that current interest rates ought to be lowered at this time.

“Europe is cutting rates but our guy wants to play cute,” he adds.

Trump also says Powell is “terrible” and Fed officials “are not very smart…

— The Kobeissi Letter (@KobeissiLetter) April 17, 2025

Tariffs Could Hurt The Economy: Fed

This week, Federal Reserve Chair Jerome Powell decided against lowering interest rates, contrary to the expectations of many cryptocurrency traders. Despite the mounting pressure due to President Donald Trump’s recent tariff declarations on a global scale.

Interest rates in the U.S. persistently stay high at 4.5%, causing borrowing costs to become pricey. Powell cautioned that Trump’s recently implemented tariffs, particularly those on China, might result in a potentially hazardous economic situation characterized by increasing prices and decelerating growth, often referred to as “stagflation.

Typically, the central bank reduces interest rates to boost a struggling economy and employment sector. Conversely, it raises rates or maintains them at a higher level to combat rising inflation.

Contrary to expectations, it seems that the current situation isn’t yielding the intended results. Specifically, the overall U.S. inflation rate, based on the Consumer Price Index, stands at 2.4%, surpassing the Federal Reserve’s goal of 2%. Furthermore, certain items like food have even higher inflation rates, as reported by the Bureau of Labor Statistics.

Based on forecasts from prediction markets, it’s unlikely that Powell will be dismissed this year.

Eliminate the noise and look at what the market is saying:

Despite all of the “fire Powell” headlines, prediction markets have been steady.

There is a mere 25% chance that Jerome Powell is out as Fed Chair in 2025, per @Kalshi.

— The Kobeissi Letter (@KobeissiLetter) April 17, 2025

Impact on Crypto Markets

Trump additionally suggested that the United States and China could reach an excellent agreement shortly, even though China had not publicly agreed to formal talks.

According to Santiment’s report, Trump suggests that Chinese authorities are open to discussions, which he uses to calm financial markets even more. Yet, it’s important to note that the market mood might shift dramatically based on Trump’s future statements.

The opinions of shoppers about cryptocurrency are significant, yet it’s acknowledged that these optimistic or pessimistic views can change abruptly if there’s a sudden shift in Trump’s stance.

Cryptocurrency traders are on edge, searching for a solid reason to jump into rising prices, while Trump has criticized Jerome Powell for not lowering interest rates. Meanwhile, he hints at an imminent “Excellent Agreement” with China. Here’s our analysis.

— Santiment (@santimentfeed) April 18, 2025

As an analyst, I’ve observed that the cryptocurrency market has maintained a steady pace this week, with the total capitalization hovering around the $2.75 trillion mark. Bitcoin, currently my focus, is in a holding pattern, managing to stay above $83,000, yet it’s yet to breach the resistance at $86,000. In simpler terms, we’ve seen a stable week with Bitcoin struggling to push past its current ceiling of $86,000.

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2025-04-18 09:41