Trump Threatens Legal Action Against Fed Chair Powell, Stirring Crypto Market Unease

Former President Donald TRUMP has escalated his campaign against Federal Reserve Chairman Jerome Powell, floating the possibility of a "huge lawsuit" over alleged mismanagement of Fed building renovations and monetary policy decisions. The threat comes amid a tense standoff over interest rates, with five Fed members reportedly supporting cuts while Powell maintains the current stance.

Trump's rhetoric specifically targets Powell's handling of economic policy, claiming "incalculable" damage from delayed rate reductions. The former president cites a $3 billion renovation project that he claims should have cost $50 million as grounds for potential legal action. This political volatility has injected uncertainty into cryptocurrency markets, with traders weighing the implications of a potential institutional crisis at the Fed.

The crypto sector remains particularly sensitive to interest rate policy, as evidenced by market reactions to Trump's statements. Powell's resistance to cutting rates despite cooling employment figures continues to create tension between political and financial institutions.