Trump’s Pressure on Fed Chair Powell Sparks Inflation Concerns, Markets React

President Trump's escalating campaign to remove Federal Reserve Chair Jerome Powell has ignited fears of long-term inflation and economic instability. The president's recent remarks—calling Powell's potential resignation "a great thing" and accusing him of sabotaging the economy—have rattled investors, despite TRUMP lacking legal authority to oust the Fed chair over policy disagreements.

Market sentiment reflects growing inflation expectations, with longer-dated Treasury yields climbing as investors hedge against potential price surges. The politicization of the traditionally independent Fed risks undermining its credibility in combating inflation, potentially prioritizing short-term economic stimulus over price stability.

While no direct cryptocurrency impact is mentioned, such macroeconomic turbulence typically drives interest toward inflation-resistant assets like Bitcoin. The situation bears monitoring as institutional investors may increasingly view crypto as a hedge against central bank uncertainty.