Donald Trump

Jerome Powell

Chair

<ul class="wp-block-list">
 <li>Donald Trump confirmed he wouldn’t remove Jerome Powell as Federal Reserve Chair.</li>
 <li>Jerome Powell asserts he will remain as Fed Chair until 2026, citing legal protections against removal.</li>
</ul>
President-elect Donald Trump has publicly expressed his support for Federal Reserve Chair Jerome Powell, despite their historically tumultuous relationship. Trump confirmed in an exclusive interview with Kristen Welker on Meet the Press that he has no plans to replace Powell, whose term as chair extends until May 2026.
When pressed about whether he would consider removing Powell, Trump responded, “No, I don’t think so. I don’t see it,” adding that while Powell might resist a request to step down, he believed Powell would leave if explicitly told to do so. This shift in tone is significant given Trump’s previous threats to fire Powell during disputes over interest rate policies in his first term.
Powell himself has remained steadfast, asserting his commitment to serving out his term, even if asked to step aside by the incoming administration. “No,” Powell firmly stated during a recent press conference, emphasizing that removing a Federal Reserve chair is “not permitted under law.”
While the political tension surrounding Powell’s position has eased, economic challenges remain at the forefront. Following last week’s FOMC meeting, the <a href="https://thenewscrypto.com/will-fed-chair-powells-rate-cut-policy-impact-crypto-market/" target="_blank" rel="noopener noreferrer nofollow">Fed reduced interest rates</a> by 25 basis points. That signals a response to cooling labor market data and ongoing inflation concerns. November’s jobless rate edged up slightly to 4.2%, raising questions about the economy’s trajectory heading into the new year.
November <a href="https://www.bls.gov/charts/consumer-price-index/consumer-price-index-by-category-line-chart.htm" target="_blank" rel="noopener noreferrer nofollow">inflation</a> projected to increase to 2.7% from last month’s 2.6%. This figure could significantly impact market sentiment, including the crypto sector.
<h3 class="wp-block-heading" id="h-bitcoin-s-surge-amid-inflation-concerns-and-powell-s-stance">Bitcoin’s Surge Amid Inflation Concerns and Powell’s Stance</h3>
The cryptocurrency market is highly sensitive to changes in macroeconomic policies, especially those related to interest rates and inflation. With Powell continuing his tenure, Bitcoin’s price could see fluctuations based on the Fed’s decisions moving forward. If inflation rises, as projected, Bitcoin may continue to be seen as a hedge against traditional market risks, leading to price surges. The recent rally that pushed Bitcoin above $100K could be a precursor to more growth. If investors continue viewing it as a store of value amidst inflation concerns, the upward momentum may continue.
Meanwhile, Powell’s recent remarks on Bitcoin have drawn attention from both the financial and the cryptocurrency markets. Speaking to CNBC, Powell described Bitcoin as a speculative asset, comparing it to gold rather than the U.S. dollar. “Bitcoin isn’t a competitor for the dollar; it’s really a competitor for gold,” he stated, highlighting its volatility and limited use as a payment method or store of value.
Since Trump’s victory in the U.S. presidential election, Bitcoin has been performing very well with new turns every day. Further, Trump’s pro-crypto stance, underscored by his vow to replace <a href="https://thenewscrypto.com/donald-trump-set-to-announce-new-sec-chairperson-tomorrow/" target="_blank" rel="noopener noreferrer nofollow">SEC Chair</a> Gary Gensler on his first day in office, has energized the cryptocurrency market.
Analysts attribute this rally to growing optimism around the U.S. potentially becoming a global crypto hub under Trump’s leadership.

How Will Crypto Market React if Trump Won’t Replace Powell?

Table of Contents

TheNewsCrypto

Other articles published on Dec 9, 2024

Solana's POPCAT Token Falls Behind as Meme Markets Shift

Can XRP Coin Make You Rich?

Shiba Inu price and burn rate are falling: time to sell?

Bitcoin MENA Conference 2024 Kicks Off in Abu Dhabi

5 Affordable Cryptos That Could Outperform the Entire Market by Next Year

Binance CEO Richard Teng Makes a Statement for the End of 2024: He Talked About The Fate Of Crypt...

Join our free newsletter for daily crypto updates!