Markets Brace for Turbulence as Powell Exit Whispers Rattle Traders
Wall Street’s rumor mill churns again—this time with unconfirmed chatter about Fed Chair Jerome Powell’s potential departure. Analysts warn of choppy trading ahead as institutional players hedge bets.
The ’Powell Put’ may be expiring: Crypto markets flash red while traditional assets wobble. Another reminder that centralized monetary policy remains crypto’s most reliable volatility engine.
Bonus jab: At least decentralized networks don’t need Senate confirmation hearings when changing leadership.
Fed independence tested as pressure builds
Trump has softened the tone in recent days, telling an interviewer that he’s not planning to fire Powell but that he needs to be replaced soon. Trump noted, however, that Powell’s term ends only in a very short period in 2026. However, uncertainty has reignited fears that the Fed is not truly independent.
The latest threats from Trump have come after periods of volatility. In one high-profile case, his social media comments sparked more than a few days of market mayhem in April.
Interest rates have remained at 4.25% to 4.50% at the central bank’s three latest meetings. Powell has repeatedly refused to bow to political influence and insisted decisions must follow macroeconomic data, not presidential preferences. Powell said in his public remarks that he has not asked for a meeting with any US president and that the central bank must remain independent.
A recent Supreme Court ruling allowing Trump to keep some of his dismissed independent agency employees off the job also had some indirect implications, some legal analysts noted. However, the court noted that the deal does not extend to the Federal Reserve, which the court called a uniquely structured body that behaved independently in the past.
Bitcoin holds strong amid political uncertainty
Bitcoin decoupled from traditional market movements as political tensions rise. Bitcoin traded above $105,000 despite Wall Street’s decline and the U.S. dollar falling to a three-year low.
CryptoQuant data suggests that the current rally is getting close to a possible short-term top. The trend remains bullish, but further political uncertainty, which could see volatility spike, may prompt profit-taking.
Trump appointed Powell in 2018, and his current term is until May 2026. While he has kept silent on Trump’s personal attacks, he has repeatedly stuck to the Fed’s familiar message of steady prices and maximum employment. He’s also said he did not ask to see any sitting president when he was in office.
Powell met the president twice during Trump’s first term—once on his birthday and again later that year. The latest meeting was the first in-person face-to-face exchange during Trump’s second term, which followed months of public pressure.
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