Trump Calls for Jerome Powell to Resign: Will This Save the Cryptocurrency Market?

On July 9, 2025, U.S. President Donald Trump demanded that Federal Reserve Chairman Jerome Powell resign if reports of deceiving Congress about the costly renovation of the Fed headquarters were true. In a Cabinet meeting, Trump criticized Powell's leadership ability, stating that he was not qualified for the job and emphasized that the Fed should cut interest rates to support the economy.

The President of the United States is also not happy with the comments blaming tariffs for delaying the interest rate cuts. Recently, he postponed new tariffs until August 1, accusing the Chairman of using them as an excuse. "Anyone would do better than J Powell," he said. The clashes are still ongoing, with experts warning that high interest rates harm investments and the cryptocurrency market. Federal Reserve Chairman Jerome has lowered the interest rate to 4.25%–4.50% but currently has no intention of cutting down the whales further. Will Powell cut down the whales to keep his position? The confrontation is not just about office costs. It is about the future of the U.S. economy. The president blames him for not cutting down the whales fast enough and says that his policies are hindering growth. In the same meeting, he said, "Anyone would be better than J Powell. He is costing us a fortune because he is keeping interest rates high." Interestingly, the chairman rebutted, stating that Trump's tariff policy is one reason the Fed is cautious. He explained that trade tariffs can raise prices, leading to inflation. This makes cutting interest rates too early risky. This conflict is at the heart of the debate over interest rates. While Trump wants easier money and lower borrowing costs, Jerome focuses on controlling inflation. But now, with this new controversy, people are wondering: Will Powell cut interest rates to keep his job? Or will Powell resign before being replaced? Will Powell be replaced? Who could be the next person? If the Fed Chairman resigns or is removed, who will be the next? According to market predictions on Kalshi, Kevin Hassett is leading with a 35% chance of becoming the next Fed Chairman. Christopher Waller is close behind with 23%, and Kevin Warsh has 21%. These candidates are known for supporting lower interest rates, aligning with Trump’s vision.

This raises a big question: Will Powell be replaced, and how will that affect not only traditional finance but also the rapidly growing cryptocurrency market? The cryptocurrency market awaits the Fed's decision: cutting down the whales or maintaining? The cryptocurrency world is closely watching. When interest rates are higher, people steer clear of risky assets like cryptocurrencies. Therefore, if the chairman cuts, we might see a rush into Bitcoin as well as other altcoins. According to the FedWatch Tool, this chart describes the various probabilities according to the target interest rate of the Federal Reserve of the United States expected to meet on July 30, 2025. There is a very high probability (95.3%) that the Fed will not change the interest rate from the current target range of 425–450 basis points. A relatively small amount (4.7%) of the market is expecting interest rates to fall to 400–425 basis points. This implies that the market consensus is overwhelming in believing that the government will maintain its current monetary policy stance in the upcoming meeting. If the Fed keeps it at 4.25–4.50%, then cryptocurrencies will be affected.

But if he surprises with a mild cutting down the whales, Bitcoin could rise 10–30%, according to analysts. In the long term, if it falls to 3.75–4.00% by 2025, it could bring new energy to the cryptocurrency market. Increased liquidity, rising investor optimism, and a weaker US dollar could combine to make digital currency more expensive. On the other hand, if inflation does not fall and the Chairman does not lower further, the cryptocurrency market may stagnate or go down. That will adjust the performance of cryptocurrencies according to stocks and the normal market. Conclusion This play itself is not political—it harms the economy and particularly the cryptocurrency environment. Whether the tension leads to Jerome's resignation or the termination of the contract becomes a reality, the decisions from the sanctuary will shape what happens next for digital currency.