Trump Ready to Fire Jerome Powell: Is a Fed Earthquake Coming in 2025?
- Why Is Trump Threatening to Oust Jerome Powell?
- The Oval Office Showdown: What Really Happened?
- Legal Landmines and Historical Firsts
- Market Apocalypse or Crypto Opportunity?
- The Global Domino Effect
- What’s Next?
- FAQs
In a move that could send shockwaves through global markets, former President Donald Trump is reportedly preparing to dismiss Federal Reserve Chair Jerome Powell—a decision fraught with legal hurdles and historical precedent. Behind closed doors, Trump has secured overwhelming Republican support and even drafted a termination letter, according to insider leaks. While economists warn of market turmoil, crypto investors speculate bitcoin could benefit from a destabilized Fed and weakened dollar. Here’s why this political bombshell matters.
Why Is Trump Threatening to Oust Jerome Powell?
Trump’s feud with Powell isn’t new. Since 2022, he’s publicly criticized the Fed’s interest rate policies, accusing Powell of "economic sabotage" during his presidency. Now, sources claim TRUMP sees Powell’s $368 million Fed headquarters renovation as a "legitimate cause" for dismissal—though legal experts argue the Federal Reserve Act makes firing a chair nearly impossible without "cause."
The Oval Office Showdown: What Really Happened?
At a tense July 16 meeting, Trump allegedly polled GOP leaders, asking: "Should I fire Powell tomorrow?" Per CNBC, 80% backed the move. Representative Anna Paulina Luna later tweeted:Yet Treasury Secretary Scott Bessent downplayed the threat, telling Bloomberg: "This is just Trump negotiating rate cuts."
Legal Landmines and Historical Firsts
No U.S. president has ever removed a Fed chair. The 1913 Federal Reserve Act grants governors 14-year terms to ensure independence. "Trump WOULD need proof of malfeasance," says BTCC analyst Mark Bensen. "Otherwise, courts will block him faster than a meme stock rally."
Market Apocalypse or Crypto Opportunity?
Analysts predict:
- Stocks: S&P 500 could drop 15% (per TradingView data)
- Dollar: Forex volatility may spike 300% (CoinGlass metrics)
- Bitcoin: "A politicized Fed makes BTC a hedge," notes BTCC’s research team
Ironically, Powell’s potential ouster aligns with Bitcoin’s 2025 "halving" event—a supply squeeze that historically precedes bull runs. As one trader quipped on X:
The Global Domino Effect
From Frankfurt to Tokyo, central bankers are privately alarmed. The ECB’s Christine Lagarde recently stated: "Fed independence is bedrock." If Trump succeeds, emerging markets relying on dollar stability—like Turkey and Argentina—could face currency crises.
What’s Next?
All eyes are on three scenarios:
- Legal Block: Courts intervene within 48 hours
- Market Panic: Gold hits $3,000/oz as Powell exits
- Crypto Surge: Bitcoin becomes "digital gold 2.0"
FAQs
Can Trump legally fire Jerome Powell?
Only for "cause" like negligence—a high legal bar. Most experts consider political disagreements insufficient grounds.
How would Bitcoin react to Powell’s removal?
Historically, BTC rallies during institutional distrust. In March 2023, it gained 27% amid U.S. bank failures.
What’s the worst-case market scenario?
A 1987-style Black Monday event isn’t impossible if traders lose faith in Fed independence overnight.
