Could Trump Remove Fed Chair Jerome Powell, and How Might it Affect Crypto?

The question of whether President Trump has the authority to dismiss Federal Reserve Chairman Jerome Powell has ignited considerable debate within economic and political circles. Legally, a President can only remove a Fed Chair “for cause.” However, the interpretation of “for cause” remains ambiguous and open to varied readings. Some argue that policy disagreements or failure to meet inflation targets do not constitute sufficient grounds for removal, while others suggest that demonstrable mismanagement or legal violations could justify it. If Trump were to remove Powell, it could lead to instability in financial markets and undermine the independence of the Federal Reserve, potentially harming the economy. Regarding cryptocurrencies, increased economic uncertainty might drive greater interest in them as alternative safe havens, or it could trigger a sharp decline in their value due to market panic. Ultimately, the possibility of Trump removing Powell remains uncertain, but it represents a potential threat to the economy and financial markets, including the cryptocurrency market.