Political Pressure Mounts Against Fed Chair Powell Over Interest Rate Policy

Federal Reserve Chair Jerome Powell faces escalating criticism from former President Donald TRUMP and Republican lawmakers over his handling of monetary policy. The dispute centers on Powell's reluctance to further cut interest rates despite Trump's demands for cheaper borrowing costs to stimulate economic growth.

Trump's public attacks on Powell intensified after the Fed implemented a 75 basis point rate cut ahead of the 2024 election, but resisted additional easing measures. "Jerome Powell has been very bad for our country," Trump declared, arguing the U.S. should have "the lowest interest rate on Earth."

The political storm coincides with growing institutional scrutiny of cryptocurrency markets, where interest rate decisions significantly impact asset valuations. While no digital assets are directly mentioned in the Powell controversy, the Fed's monetary policy directly influences liquidity conditions for Bitcoin, Ethereum, and other major cryptocurrencies.

Legal scholars question whether Trump could actually remove Powell before his term expires in May 2026. The Federal Reserve's statutory independence theoretically shields its chair from political interference, though the growing chorus of critics including FHFA Director Bill Pulte and former Fed Governor Kevin Warsh suggests mounting pressure for leadership changes at the central bank.