Trump’s Fed Feud Rattles Markets as Powell Firing Rumors Swirl

Former President Donald Trump's public clashes with Federal Reserve Chair Jerome Powell have reignited market volatility. Reports of Trump's alleged plans to fire Powell—later partially retracted—sent shockwaves through equities and fixed income. Investors now weigh the risks of political interference in central bank independence.

The tension centers on Trump's repeated criticisms of Powell's monetary policy. Accusations of incompetence and threats of dismissal create uncertainty at a delicate moment for markets. While TRUMP claims no immediate removal plans, his suggestion of investigating Fed spending as potential grounds keeps speculation alive.

Market participants view stable Fed leadership as crucial during economic transitions. Any perception of politicized rate-setting could destabilize the dollar and Treasuries—key benchmarks for crypto valuations. Bitcoin and other digital assets often benefit from institutional uncertainty, though broader risk-off sentiment may pressure altcoins.