Trump Tariffs Hit Markets as He Moves to Fire Fed Chair Over Interest Rates
- Trump tariffs made Trump seeks Supreme Court approval to fire Federal Reserve Chair Jerome Powell
- Powell resists pressure to cut interest rates despite market turbulence
- Crypto markets may benefit if Trump installs a more rate-cutting, pro-crypto successor
The war between Donald Trump and Federal Reserve Chairman Jerome Powell has come to a boil again, with Trump reportedly asking the Supreme Court to allow him to fire Powell, a move that would shake U.S. markets and potentially trigger crypto.
The tension arises from Powell’s refusal to cut interest rates in the face of Trump’s belligerent tariffs policy creating global market chaos.
On April 2, 2025—”Liberation Day”—Trump imposed sharp tariffs on dozens of countries, sending markets into a panic. By April 7, world equities had their worst meltdown in decades, and the crypto market lost 10–20%, with liquidations of $888 million.Though a reported 90-day tariff hiatus put others at ease, Trump doubled up on China by raising tariffs to 145%.
As investor nerves grew and markets crashed, Trump was adamant that rate cuts would stabilize the economy. Powell, however, remained steadfast—insisting that control of inflation must take precedence. He cautioned that swift monetary moves in the midst of rapidly shifting trade policies would potentially do more harm than good.
Now, Trump could be trying to remove Powell by trying to overturn a 1935 Supreme Court regulation that shields independent agency leaders from removal by the executive. Trump, if successful, may have more control over agencies such as the Fed. Some foresee pro-crypto candidates such as Kevin Warsh as potential successors to Powell.
And what does it all mean for crypto?
In the short term, Powell’s ouster might be bullish. Lower rates weaken the dollar and drive risk-on assets like Bitcoin. A new, crypto-bullish Fed chair could also translate into a friendlier regulatory environment. But the bigger problem is political overreach. Removing the Fed chair via Supreme Court could erode the agency’s independence and destroy confidence around the world in U.S. economic policy.
For now, Powell says he won’t step down until his term ends in 2026. But with Trump insisting on lowering rates and not hesitating to take the courts. Which is to get them done crypto traders would do well to stay alert. Whether this leads to heightened volatility or a bullish tsunami is yet to be seen depending on how the economic and legal dominoes fall.
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Trump Tariffs Hit Markets as He Moves to Fire Fed Chair Over Interest Rates
- Trump tariffs made Trump seeks Supreme Court approval to fire Federal Reserve Chair Jerome Powell
- Powell resists pressure to cut interest rates despite market turbulence
- Crypto markets may benefit if Trump installs a more rate-cutting, pro-crypto successor
The war between Donald Trump and Federal Reserve Chairman Jerome Powell has come to a boil again, with Trump reportedly asking the Supreme Court to allow him to fire Powell, a move that would shake U.S. markets and potentially trigger crypto.
The tension arises from Powell’s refusal to cut interest rates in the face of Trump’s belligerent tariffs policy creating global market chaos.
On April 2, 2025—”Liberation Day”—Trump imposed sharp tariffs on dozens of countries, sending markets into a panic. By April 7, world equities had their worst meltdown in decades, and the crypto market lost 10–20%, with liquidations of $888 million.Though a reported 90-day tariff hiatus put others at ease, Trump doubled up on China by raising tariffs to 145%.
As investor nerves grew and markets crashed, Trump was adamant that rate cuts would stabilize the economy. Powell, however, remained steadfast—insisting that control of inflation must take precedence. He cautioned that swift monetary moves in the midst of rapidly shifting trade policies would potentially do more harm than good.
Now, Trump could be trying to remove Powell by trying to overturn a 1935 Supreme Court regulation that shields independent agency leaders from removal by the executive. Trump, if successful, may have more control over agencies such as the Fed. Some foresee pro-crypto candidates such as Kevin Warsh as potential successors to Powell.
And what does it all mean for crypto?
In the short term, Powell’s ouster might be bullish. Lower rates weaken the dollar and drive risk-on assets like Bitcoin. A new, crypto-bullish Fed chair could also translate into a friendlier regulatory environment. But the bigger problem is political overreach. Removing the Fed chair via Supreme Court could erode the agency’s independence and destroy confidence around the world in U.S. economic policy.
For now, Powell says he won’t step down until his term ends in 2026. But with Trump insisting on lowering rates and not hesitating to take the courts. Which is to get them done crypto traders would do well to stay alert. Whether this leads to heightened volatility or a bullish tsunami is yet to be seen depending on how the economic and legal dominoes fall.
Highlighted Crypto News Today
Read More